A lawmaker in California has recently incorporated protections for Bitcoin and cryptocurrency investors into a money transmission bill originally introduced in February. This legislation aims to safeguard the self-custody rights of approximately 40 million residents in the state.
The Assembly Bill 1052 was put forward as the Money Transmission Act on February 20, 2025. On March 28, it was amended by Democrat and Banking and Finance Committee Chair Avelino Valencia to include various investor protections related to Bitcoin and cryptocurrencies. The title has since been updated, replacing “Money Transmission Act” with “Digital Assets.”
“California often leads the way in policy development, and if Bitcoin Rights is enacted here, it could pave the way for similar legislation elsewhere,” stated the CEO of an advocacy group in a March 30 announcement.
“Once enacted, this law will ensure that nearly 40 million residents in California can hold their digital assets without the threat of discrimination,” the statement emphasized.
In addition, the bill would validate the use of digital financial assets as a legitimate payment method in private transactions, barring public entities from imposing restrictions or taxes solely based on their method of payment.
Furthermore, the proposal would widen the remit of California’s Political Reform Act of 1974, making it unlawful for public officials to issue, sponsor, or advocate for any digital asset, security, or commodity.
“Public officials shall refrain from engaging in any transactions relating to digital assets that could result in a conflict of interest with their official responsibilities,” a provision of the bill asserts.
The bill is currently in the “desk process,” meaning it has been formally submitted and is awaiting its first reading.
Currently, 99 merchants in California accept Bitcoin payments, according to data from BTC Maps. Prominent crypto firms such as Ripple Labs, Solana Labs, and Kraken have their headquarters in California.
Additionally, a separate bill concerning stablecoins was introduced on February 2, 2025. This legislation aims to clarify the collateral requirements, liquidation processes, redemption and settlement mechanisms, and security audits related to stablecoins.
At the state level across the U.S., there are nearly 100 bills and measures related to Bitcoin. Reports indicate that 95 such bills have surfaced in 35 states, including 36 active Bitcoin reserve bills.
On March 6, the Texas Senate passed a Bitcoin strategic reserve bill with a 25-5 vote, and on March 24, Kentucky Governor Andy Beshear approved a Bitcoin Rights bill into law.
Just earlier this month, the U.S. President enacted an executive order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile, which will initially employ cryptocurrency seized during governmental criminal investigations.