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A California lawmaker has recently expanded a money transmission bill introduced in February to include protections for Bitcoin and cryptocurrency investors, focusing on securing self-custody rights for the state's nearly 40 million residents.
Originally introduced on February 20, 2025, as the Money Transmission Act, California’s Assembly Bill 1052 was amended on March 28 by Democrat Avelino Valencia, chair of the Banking and Finance Committee, to include various protections related to Bitcoin and cryptocurrencies.
The updated legislation, now renamed “Digital Assets,” replaces the previous title of “Money Transmission Act.”
According to Satoshi Action Fund CEO Dennis Porter, California often sets trends for national policy. He stated on March 30 that if the “Bitcoin Rights” legislation succeeds in California, it can succeed anywhere.
“Once enacted, this law will ensure that nearly 40 million Californians have the right to self-custody their digital assets without facing discrimination.”
A key element of the bill addresses the handling of "unclaimed digital property," establishing a legal framework that mandates such assets be secured by licensed custodians, thereby adding a layer of security and clarity to their management. Furthermore, the legislation seeks to reinforce the separation of political influence from the digital asset space by amending the Political Reform Act of 1974. This amendment would prohibit public officials from issuing, sponsoring, or promoting specific digital assets.
Advocates of the bill highlight its potential to set a precedent for other jurisdictions, suggesting that California's actions could spur a broader national conversation about digital asset regulation. The focus on self-custody and the prevention of discriminatory practices are seen as crucial steps in protecting individual financial freedom within the evolving digital economy.