California is advancing a landmark bill to solidify self-custody rights for cryptocurrency users while establishing clear guidelines for digital asset transactions. AB-1052, spearheaded by Assemblyman Avelino Valencia, Chair of the Banking and Finance Committee, passed critical amendments on March 28, shifting its focus from general money transmission to explicitly protecting digital asset ownership. The revised legislation now prohibits public agencies from taxing or restricting cryptocurrency payments in private transactions and ensures individuals can securely manage their holdings without third-party interference.
The bill grants nearly 40 million residents the right to self-custody Bitcoin and other digital assets, preventing government entities from imposing discriminatory policies based on payment method. It also introduces a framework for handling unclaimed digital property, requiring licensed custodians to safeguard dormant assets instead of allowing them to enter bureaucratic limbo. Additionally, AB-1052 amends California’s Political Reform Act of 1974 to bar public officials from issuing, promoting, or trading digital assets, aiming to prevent conflicts of interest and market manipulation.
Supporters like the Satoshi Action Fund champion the legislation as a model for other states, citing California’s historical role in shaping national policy. If enacted, the law would validate digital assets as legal tender in private exchanges and protect hardware wallet users from regulatory overreach. The bill awaits its first reading in the Assembly after clearing the desk review process, with proponents arguing it balances innovation and consumer protection in the rapidly evolving crypto sector.
Sources:
California’s AB-1052 Proposes Key Protections for Bitcoin and Digital Asset Users
https://www.tronweekly.com/california-amends-ab-1052-to-secure-bitcoin-and-crypto-self-custody-rights/
California Takes Positive Bitcoin Step – Aims to Support BTC Holders
https://www.mitrade.com/insights/news/live-news/article-3-731819-20250401
https://www.cryptopolitan.com/california-introduces-bitcoin-rights-bill/
https://www.ainvest.com/news/california-introduces-bill-protecting-bitcoin-custody-rights-2503/
https://coinfomania.com/california-bitcoin-law-ab-1052-bitcoin-bill-could-reshape-crypto-rights-forever/
https://icoholder.com/en/news/california-bill-seeks-to-legalize-digital-asset-payments
