California Introduces Bitcoin Rights Bill to Secure Self-Custody for 40M Americans

Highlights:

• California proposes Bitcoin Rights Bill AB-1052 to protect the self-custody of digital assets.
• The bill bans public officials from promoting or restricting digital assets for payments.
• U.S. sees 95 Bitcoin-related bills in 35 states, with Texas and Kentucky advancing laws.

The California State Assembly has introduced the Bitcoin Rights Bill, known as AB-1052. It seeks to establish legal protection for the self-custody of digital assets. AB-1052 was first introduced as the Money Transmission Act on February 20. This bill originally focused on regulating money transfers and financial services. Chair of the Banking and Finance Committee, Democrat Avelino Valencia, amended it on March 28. He changed the bill to include protections for people who invest in Bitcoin and other cryptocurrencies.

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’s ‘Bitcoin Rights’ Bill Gains Momentum

The amendment also removed the name “Money Transmission Act.” Now, the bill is called “Digital Assets” to better match its focus on cryptocurrency and blockchain technology. In an X post on March 30, Satoshi Action Fund CEO Dennis Porter stated that California plays a key role in shaping national policies. If Bitcoin Rights gains approval here, its adoption elsewhere becomes more likely.

He stated:

“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 sets rules for handling “unclaimed property” for digital assets, which the group supports. Satoshi Action Fund is a nonprofit that promotes Bitcoin and digital asset laws at the state and federal levels. It works with lawmakers, regulators, and industry leaders to support financial freedom, property rights, and innovation.

The bill seeks to legitimize digital financial assets for use in private transactions. It would also prevent public entities from restricting or taxing digital assets based only on their use as payment. Additionally, the bill would expand California’s Political Reform Act of 1974. It would prohibit public officials from issuing, sponsoring, or promoting a digital asset, security, or commodity.

AB 1052 restricts public officials from participating in digital asset transactions that may create conflicts of interest. The bill is presently in the “desk process,” pending its initial reading. Meanwhile, 99 merchants in California accept Bitcoin payments, and major crypto firms like Ripple, Solana Labs, and Kraken are based in the state.

California introduced a stablecoin bill on Feb. 2. It aims to clarify collateral requirements, liquidation processes, and redemption rules. It also sets guidelines for settlement mechanisms and security audits.

Bitcoin Legislation Gains Traction Across the U.S.

California is not the only state pushing for crypto-friendly policies. Bitcoin-related legislation is gaining traction across the U.S., with 95 bills introduced in 35 states. Texas recently approved a Bitcoin strategic reserve bill, while Kentucky enacted a Bitcoin Rights law.

On the federal level, President Trump issued an executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile. These actions show a growing recognition of Bitcoin as a legitimate financial asset in national and state economies.