California Takes Bold Step to Protect Cryptocurrency Investors
California is taking a bold step toward protecting cryptocurrency investors, with new amendments transforming an existing financial regulation bill into a dedicated digital assets framework.
Transformation of the Money Transmission Act
Initially proposed in February 2025 as the Money Transmission Act, Assembly Bill 1052 has now been reshaped under the leadership of Assemblymember Avelino Valencia, shifting its focus toward Bitcoin and crypto rights. With these revisions, the bill guarantees Californians the ability to self-custody their digital assets without government interference. Dennis Porter, CEO of the Satoshi Action Fund, highlighted California’s influence in shaping national policy, suggesting that if the bill succeeds, similar protections could spread across the U.S.
Legislation Details
In addition to securing self-custody rights, the legislation ensures that cryptocurrencies can legally be used in private transactions. It also explicitly prevents government bodies from imposing discriminatory taxes or restrictions on digital asset payments. Furthermore, the bill introduces ethics rules prohibiting public officials from endorsing or investing in digital assets if it creates a conflict of interest.
Growing Bitcoin Adoption
Now awaiting its first official review, the bill has entered the “desk process.” Meanwhile, Bitcoin adoption continues to grow in California, with nearly 100 businesses accepting BTC payments. The state is also home to major blockchain companies like Ripple Labs, Solana Labs, and Kraken.
Nationwide Movement
California’s legislative push reflects a nationwide movement, with 95 crypto-related bills introduced across 35 states. This includes 36 active proposals for Bitcoin reserves. Texas has already made progress in this area, passing a Bitcoin strategic reserve bill in early March, while Kentucky’s governor recently signed a Bitcoin Rights law into effect.
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Alexander Stefanov
