A California lawmaker has introduced significant amendments to a money transmission bill, reinforcing Bitcoin and crypto investor protections for nearly 40 million residents. Assembly Bill 1052 (AB 1052), initially introduced as the Money Transmission Act on Feb. 20, 2025, has now been renamed “Digital Assets” following modifications by Democrat Avelino Valencia, chair of the Banking and Finance Committee, on March 28.
Self-Custody Rights and Legal Recognition of Digital Assets
One of the most impactful provisions in the amended bill is the explicit guarantee of self-custody rights for digital asset holders. If passed, the legislation would prevent discrimination against individuals who choose to hold their crypto independently rather than through third-party custodians.
Satoshi Action Fund CEO Dennis Porter emphasized the potential national implications of the bill, stating on March 30:
“California often sets the national blueprint for policy, and if Bitcoin Rights passes here, it can pass anywhere. Once passed, this legislation will guarantee nearly 40 million Californians the right to self-custody their digital assets without fear of discrimination.”
Additionally, the bill would legally recognize digital assets as valid forms of payment for private transactions and prohibit public entities from restricting or taxing their use solely based on their nature as digital currencies.
New Restrictions on Public Officials
AB 1052 also introduces new regulatory measures under California’s Political Reform Act of 1974. It explicitly bars public officials from issuing, promoting, or sponsoring digital assets, securities, or commodities that could present conflicts of interest.
A section of the bill states:
“A public official shall not engage in any transaction or conduct related to a digital asset that creates a conflict of interest with their public duties.”
Bill Status and Broader Crypto Adoption in California
AB 1052 is currently in the “desk process,” meaning it has been formally introduced and is awaiting its first reading.
California is already a key hub for crypto adoption, with 99 merchants currently accepting Bitcoin payments, according to BTC Maps data. The state is also home to major crypto firms, including Ripple Labs, Solana Labs, and Kraken.
In a separate legislative effort, California introduced a stablecoin-related bill on Feb. 2, 2025. This bill aims to establish clearer guidelines for stablecoin collateral requirements, liquidation procedures, redemption and settlement mechanisms, and security audits.
