Assembly Bill 1052 seeks to enshrine crypto self-custody and payment freedom into law, potentially influencing future national digital asset policy
A Bold Policy Pivot in the Golden State
California—home to some of the largest crypto-native firms in the U.S.—is taking a significant step toward legally codifying crypto rights, following a sweeping amendment to Assembly Bill 1052 (AB 1052). What began in February 2025 as a “Money Transmission Act” has now been rewritten and rebranded as a “Digital Assets” bill that explicitly protects Bitcoin ownership, self-custody, and its use in payments.
The amendment, spearheaded by Assemblymember Avelino Valencia, chair of the Banking and Finance Committee, positions California at the forefront of state-level crypto rights legislation, potentially affecting the financial freedoms of nearly 40 million residents.
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
“California often sets the national blueprint for policy, and if Bitcoin Rights passes here, it can pass anywhere,” said Dennis Porter, CEO of the Satoshi Action Fund, in a March 30 statement.
Key Provisions: From Custody Rights to Political Ethics
The amended AB 1052 includes several groundbreaking clauses designed to safeguard both consumers and the democratic process:
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Right to self-custody: The bill guarantees individuals the right to hold their digital assets independently, without reliance on centralized custodians or third parties.
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Payment freedom: The use of Bitcoin and other digital financial assets is deemed a valid and legal form of payment in private transactions.
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Non-discrimination clause: Government agencies may not impose taxes, fees, or restrictions on digital asset usage solely based on the medium being crypto.
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Public ethics reform: Under the amendment, public officials are prohibited from issuing, promoting, or engaging in digital asset projects that may lead to a conflict of interest.
“A public official shall not engage in any transaction or conduct related to a digital asset that creates a conflict of interest with their public duties,” the bill states.
The legislation is currently in the “desk process,” meaning it has been formally introduced and awaits its first official reading in the California State Assembly.
Context: California’s Crypto Landscape
California plays an outsized role in the digital asset ecosystem:
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It is home to Ripple Labs, Kraken, and Solana Labs
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According to BTC Maps, 99 merchants already accept Bitcoin payments statewide
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San Francisco and Los Angeles are major hubs for Web3 developer communities
In that context, AB 1052 represents more than just regulatory housekeeping—it’s a signal of California’s intent to lead on crypto policy at a time when federal regulation remains fragmented.
State-by-State Momentum Building
California is not acting in isolation. Across the U.S., crypto-focused legislation is rapidly expanding:
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Texas passed a Bitcoin strategic reserve bill in early March
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Kentucky signed its own Bitcoin Rights bill into law on March 24
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President Trump signed an executive order this month to establish a Strategic Bitcoin Reserve using seized digital assets from federal cases
According to Bitcoin Law, over 95 crypto-related bills have been introduced at the state level across 35 U.S. states, many focusing on Bitcoin reserves, self-custody rights, and stablecoin regulations.
California’s entry into this legislative landscape carries symbolic weight. As the fifth-largest economy in the world, what California legalizes or bans often sets national and international precedents.
What This Means for Investors and Builders
For crypto users, AB 1052 provides long-awaited legal clarity around core principles of Bitcoin ownership. It affirms that:
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Self-custody is a protected right
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Using Bitcoin for payment is not a legal gray zone
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Government overreach into crypto usage will face legislative limits
For builders and startups, it could de-risk product development in areas like wallet services, point-of-sale integrations, and DAO treasury management. The legislation may also encourage merchant adoption, especially among those wary of regulatory ambiguity around crypto acceptance.
That said, the bill also introduces stricter ethical boundaries for government employees and public officials, signaling that crypto’s role in public policy will be closely scrutinized—not just enabled.
Final Thoughts: Is California Redefining Digital Liberty?
With the transformation of AB 1052 from a conventional money transmission bill into a declaration of digital rights, California is attempting to reclaim leadership in crypto legislation—after years of taking a relatively cautious approach compared to states like Wyoming and Texas.
Whether the bill will pass in its current form remains to be seen. But its mere introduction sets the tone for a new era of crypto policy focused not only on control and compliance—but also on freedom and personal agency.
If California succeeds, other states—and eventually Washington D.C.—may be forced to follow.
