- California’s AB 1052 aims to legitimize Bitcoin for private payments and bar unfair taxes on digital assets.
- The bill also restricts public officials from crypto-related conflicts, signaling stronger ethical standards in digital finance.
California has taken a step toward recognizing digital assets with an updated bill that includes new protections for Bitcoin and crypto holders. Assembly Bill 1052, initially introduced as the Money Transmission Act, has been renamed “Digital Assets” following amendments made on March 28 by Assemblymember Avelino Valencia.
The revised legislation constitutes one of the most direct acknowledgments of Bitcoin as a valid means of payment in the state.
We are proud to officially announce that ‘Bitcoin Rights’ has been introduced in the California Assembly by the Chair of Banking and Finance – Assemblyman Valencia.
Once passed, nearly 40 million Americans will have their right to self-custody protected!
The bill also creates… pic.twitter.com/zvLwCM46je
— Satoshi Action Fund (@SatoshiActFund) March 29, 2025
The bill introduces legal safeguards for using digital financial assets in private transactions. If passed, it would prohibit public agencies from imposing taxes or restrictions solely based on the use of cryptocurrencies as payment methods. However, the proposed regulations could set a ruling, given California’s status as a leading influence on national financial and technological policy.
One of the bill’s key provisions establishes the legal use of Bitcoin and other digital assets in private transactions. Under the new language, digital currencies would be recognized similarly to fiat when used as a medium of exchange. This clarification may provide a more predictable legal environment for users and businesses.
Further, the bill aims to protect individuals and entities from regulatory penalties simply for choosing digital assets over traditional payment options. This provision could impact a state where digital finance innovation is already active.
Ethics Restrictions for Public Officials
AB 1052 also proposes an update to California’s Political Reform Act of 1974. The amendment would bar public officials from promoting, investing in, or transacting with digital assets in ways that could create a conflict of interest. Language within the bill outlines restrictions designed to separate public duty from personal gain, particularly in financial dealings related to digital commodities or securities.
These reforms address growing concerns over ethical boundaries, especially as cryptocurrencies become more embedded in public and private finance systems.
The introduction of AB 1052 comes amid a wider national movement toward state-level crypto regulation. Currently, 95 Bitcoin-related bills are under consideration across 35 U.S. states, with 36 focusing on Bitcoin reserve strategies. Recent developments include Kentucky signing its own Bitcoin Rights legislation and Texas passing a Bitcoin reserve bill.
Meanwhile, California has also introduced a separate bill to regulate stablecoins. That legislation, proposed on February 2, defines requirements for collateral backing, liquidation procedures, and audit standards.
A Gradual Shift Despite Limited Adoption
Despite these legislative moves, crypto adoption remains limited at the retailer level. Currently, BTC Maps shows only 99 businesses in California accept Bitcoin payments. Still, the state is close to major digital asset firms, including Ripple Labs, Solana Labs, and Kraken, which makes it a major jurisdiction in shaping national crypto policy.
AB 1052 is currently in the “desk process,” awaiting its first reading in the Assembly. As we highlighted in our previous post, if the bill advances, it could influence similar legislation nationwide, reinforcing digital asset protections and standards.
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