California Introduces 'Bitcoin Rights' in Amended Digital Assets Bill

California Takes a Bold Step with 'Bitcoin Rights' in New Digital Assets Bill

In a move that could set a precedent for the rest of the United States, California has introduced Bitcoin rights into an amended version of its Money Transmission Act, now renamed the Digital Assets Bill. On March 28, 2025, California Democrat Avelino Valencia, the chair of the Banking and Finance Committee, amended the original bill to include comprehensive protections for Bitcoin and crypto investors.

The bill, originally introduced on February 20, 2025, aimed at regulating money transmission services. However, Valencia’s amendments shift the focus towards self-custody rights and protection for crypto users, ensuring that Bitcoin and other digital assets are legally recognized and protected for California's nearly 40 million residents.

What Does the New Bill Entail?

The amended bill offers a range of protections for Bitcoin holders and crypto investors. One of the key provisions of AB 1052 is the guarantee that Californians will have the right to self-custody their digital assets without facing discrimination or restrictions. This marks a significant milestone in ensuring that Bitcoin and other cryptocurrencies are treated as legitimate and secure assets for individuals to hold and transact.

The bill also designates digital financial assets, including Bitcoin, as valid and legal forms of payment in private transactions. This would mean that individuals and businesses could use crypto for everyday transactions without fear of legal repercussions. Additionally, public entities would be prohibited from restricting or taxing digital assets solely based on their use as a payment method.

Furthermore, the bill expands the scope of the California Political Reform Act of 1974 to prevent public officials from engaging in activities related to digital assets that could present conflicts of interest with their public duties. This aims to maintain the integrity of the state’s political and financial systems.

Reactions to the Proposed Changes

Dennis Porter, CEO of Satoshi Action Fund, praised the new amendments, stating, “California often sets the national blueprint for policy, and if Bitcoin Rights passes here, it can pass anywhere.” He emphasized that, if passed, the legislation would guarantee self-custody rights for Californians, reinforcing their ability to control and protect their digital assets.

At present, 99 merchants in California accept Bitcoin payments, according to BTC Maps data, and major crypto firms like Ripple Labs, Solana Labs, and Kraken are based in the state. The growing presence of digital asset companies and Bitcoin adoption in California underscores the importance of clear, supportive regulations to foster innovation while protecting consumers.

A Growing Trend in the U.S.

California’s move is part of a broader trend across the United States, where Bitcoin-related legislation is gaining momentum. According to Bitcoin Law, 95 Bitcoin-related bills have been introduced at the state level in 35 states, with 36 Bitcoin reserve bills still live. Other states, including Texas and Kentucky, have also made strides in incorporating Bitcoin into their regulatory frameworks.

In March, the Texas Senate passed a Bitcoin strategic reserve bill, and Kentucky saw the signing of a Bitcoin Rights bill by Governor Andy Beshear. The U.S. federal government is also exploring Bitcoin's role in its financial system. On March 7, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve and Digital Asset Stockpile, utilizing cryptocurrency forfeited in criminal cases.

What’s Next for California’s Digital Assets Bill?

The AB 1052 bill is currently in the "desk process," meaning it has been formally introduced and is awaiting its first reading. If passed, the bill could significantly impact how Bitcoin and other digital assets are viewed and used in California, potentially leading the way for other states to follow suit.

While the bill aims to protect the rights of crypto investors, it also positions California at the forefront of digital asset regulation, ensuring that its residents can fully participate in the rapidly growing crypto economy with confidence.

As the bill progresses through the legislative process, it will be closely watched by industry experts and crypto advocates, both in California and across the United States. With such sweeping implications for the crypto space, AB 1052 could serve as a model for future digital asset legislation nationwide.

For more on California’s crypto legislation and the latest developments in digital assets, keep an eye on updates from reliable sources like CoinMarketCap.