California Democrat Avelino Valencia has amended Assembly Bill 1052, initially introduced as the Money Transmission Act on February 20, 2025, to include significant Bitcoin and crypto investor protections. This move aims to secure crypto self-custody rights for the state’s 39.4 million residents. The amendment, made on March 28, renames the legislation to "Digital assets" and introduces several Bitcoin (BTC) and crypto-related investor safeguards.

Dennis Porter, CEO of Satoshi Action Fund, stated on March 30 that California often sets the national blueprint for policy, and if Bitcoin Rights passes there, it could pass anywhere. He emphasized that the legislation would guarantee nearly 40 million Californians the right to self-custody their digital assets without fear of discrimination.

The bill would also recognize the use of a digital financial asset as a valid and legal form of payment in private transactions. Additionally, it would prohibit public entities from restricting or taxing digital assets solely based on their use as payment. The legislation expands the scope of California’s Political Reform Act of 1974 to prevent public officials from issuing, sponsoring, or promoting any digital asset, security, or commodity, aiming to prevent conflicts of interest.

Currently, AB 1052 is in the "desk process," awaiting its first reading. Data from BTC Maps indicates that 99 merchants in California currently accept Bitcoin payments. Major crypto firms like Ripple Labs, Solana Labs, and Kraken are based in the state.

In related news, a stablecoin-related bill was introduced in California on February 2, 2025, seeking to clarify stablecoin collateral, liquidation processes, redemption and settlement mechanisms, and security audits.

Bitcoin-related legislative activity is increasing at the state level, with 95 Bitcoin-related bills or measures introduced in 35 states, including 36 Bitcoin reserve bills still active, according to Bitcoin Law. The Texas Senate passed a Bitcoin strategic reserve bill on March 6, and Kentucky Governor Andy Beshear signed a Bitcoin Rights bill into law on March 24. Furthermore, US President Donald Trump recently signed an executive order to create a Strategic Bitcoin Reserve and a Digital Asset Stockpile, utilizing cryptocurrency forfeited in government criminal cases.