California’s Bitcoin Revolution: New Bill Could Reshape Crypto Rights

California has just shaken up the crypto landscape with a game-changing move. Lawmakers have amended an existing bill to prioritize Bitcoin and digital asset rights, potentially setting a precedent for the rest of the country. If passed, this legislation could secure the right to self-custody digital assets for nearly 40 million residents, marking one of the most significant legal shifts in cryptocurrency history.

Bitcoin Rights Take Center Stage

Originally introduced as the Money Transmission Act in February 2025, California’s Assembly Bill 1052 has undergone a radical transformation. On March 28, Avelino Valencia, chair of the state’s Banking and Finance Committee, amended the bill to emphasize Bitcoin and crypto investor protections. The bill has even been renamed from “Money Transmission Act” to simply “Digital Assets,” signalling a clear shift in legislative intent.

Satoshi Action Fund CEO Dennis Porter has called this a potential blueprint for the nation. “California often sets the national blueprint for policy, and if Bitcoin Rights passes here, it can pass anywhere,” he said. The legislation aims to eliminate discrimination against Bitcoin holders, ensuring they can store their assets without interference.

What’s in the Bill?

The proposed law guarantees three major protections:

1. Self-Custody Rights – Californians would have the legal right to hold their digital assets without reliance on third parties.
2. Legal Payment Recognition – Bitcoin and other digital assets would be recognized as valid forms of payment in private transactions.
3. Public Official Restrictions – Government officials would be barred from issuing, sponsoring, or promoting digital assets that could create conflicts of interest.

These amendments address growing concerns about governmental overreach and restrictive regulations, ensuring that digital asset users retain financial sovereignty.

Why This Bill Matters

California is home to major crypto firms like Ripple Labs, Solana Labs, and Kraken. If this legislation passes, it could provide legal clarity and protections that encourage more crypto businesses to establish operations in the state. Currently, 99 merchants in California accept Bitcoin, and that number could surge under the new legal framework.

Additionally, the bill prevents public entities from imposing unnecessary restrictions or taxes on digital assets, a move that could stimulate further adoption of Bitcoin as a legitimate form of payment.

A Nationwide Trend?

California is not alone in its push for crypto-friendly policies. A wave of Bitcoin-related bills is sweeping the United States, with 95 bills introduced across 35 states. Notably, Texas passed a Bitcoin strategic reserve bill earlier this month, and Kentucky recently signed a Bitcoin Rights bill into law.

On the federal level, President Trump recently signed an executive order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile. These developments indicate a growing recognition of Bitcoin as a legitimate financial asset with a role in national and state economies.

What’s Next?

Assembly Bill 1052 is currently in the “desk process,” awaiting its first reading. If it moves forward, it could become one of U.S. history’s most influential crypto bills.

For now, the crypto community is watching closely. Will California’s bold move spark a nationwide wave of Bitcoin-friendly legislation? If history is any indication, where California leads, others follow. 

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