California’s Bold Bitcoin Rights Bill Could Impact 39 Million

Key Points

• California amends AB 1052 to prioritize Bitcoin and crypto rights
• California’s Bold Bitcoin Rights Bill Could Impact 39 Million
• Digital assets now recognized as legal payment in private deals
• Public officials banned from crypto promotions to avoid conflict

California is once again setting the tone for the crypto world. On March 28, 2025, Assemblymember Avelino Valencia pushed through a powerful amendment to Assembly Bill 1052, originally a money transmission regulation. It’s now laser-focused on Bitcoin rights and crypto investor protections.

The bill, first introduced on February 20, 2025, has been renamed to simply: “Digital assets.” That small change signals a big shift in how California — and potentially the rest of the U.S. — will handle cryptocurrencies going forward.

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

If signed into law, this legislation will guarantee nearly 40 million Californians the right to self-custody their digital assets — a crucial component of crypto ownership and freedom.

This comes as part of a broader movement in the U.S., where crypto-related legislation is rapidly accelerating. President Donald Trump’s recent executive order to build a Strategic Bitcoin Reserve has already shaken the industry. Read more about it here.

What’s Inside California’s New Digital Assets Bill

1. Bitcoin Rights and Self-Custody Protections

At its core, AB 1052 aims to make self-custody a legal right. This means Californians can hold their Bitcoin or other digital assets in their own wallets — without relying on exchanges or custodians.

More importantly:

• Digital assets are now valid legal tender in private transactions.

• Public agencies can’t impose extra taxes or restrictions just because it’s crypto.

• The bill gives every Californian the right to own and use crypto freely.

Right now, 99 California merchants already accept Bitcoin payments, based on BTC Maps data. With this legal support, that number is expected to grow — boosting adoption and usage.

This shift aligns with broader market movements seen in the crypto market’s quarterly volatility, especially around major events like options expiry dates, which continue to shake up investor strategies.

🇺🇸 THE STATE OF CALIFORNIA IS ON A PATH TO PROTECT YOUR RIGHT TO #BITCOIN & CRYPTO SELF-CUSTODY!

MEGA BULLISH 🚀 pic.twitter.com/fJyToriSHy

— Crypto Rover (@rovercrc) March 30, 2025

2. Ethical Guardrails for Public Officials

One of the most interesting parts of the bill is its crackdown on potential conflicts of interest. Under AB 1052, public officials in California would be:

• Banned from promoting, sponsoring, or endorsing any digital asset.

• Prohibited from engaging in crypto-related activities that conflict with their public role.

• Subject to extended rules under California’s Political Reform Act of 1974.

This addition aims to prevent misuse of influence and ensure fair, unbiased policy decisions — something the crypto world has been asking for, especially in the wake of previous scandals and data breaches involving major exchanges.

The bill also sends a strong message: crypto is welcome in California, but it must be handled transparently and ethically.

California Joins the National Race to Regulate Bitcoin

AB 1052 is part of a bigger story. Across the U.S., over 95 Bitcoin-related bills have surfaced in 35 states — including 36 Bitcoin reserve bills still active.

Other key developments:

• The Texas Senate passed a Bitcoin reserve bill with overwhelming support.

• Kentucky Governor Andy Beshear signed their own Bitcoin Rights bill into law.

• Donald Trump’s digital asset reserve order put federal momentum behind the trend.

This rapid-fire legislation shows that Bitcoin is now part of the political landscape — and California’s move will add serious credibility.

California also continues to host major Web3 players like Ripple Labs, Solana Labs, and Kraken, making it a key battleground for crypto policy.

Alongside the Bitcoin Rights bill, California lawmakers are also diving into stablecoin regulation, introducing new rules on collateral, liquidation, and audit processes — efforts similar to those that could eventually reshape Ethereum’s roadmap as well. Check out Ethereum’s 2025 comeback plan here.

This legislative boom follows a cultural shift where Web3 innovation meets real-world policy. The demand for digital freedom and decentralized ownership is no longer niche — it’s mainstream.

And it’s not just governments stepping up. The emergence of platforms like BUKE, which aim to redefine tokenization, identity, and crypto utility, shows how the private sector is evolving alongside regulatory clarity.

If California passes this bill, it won’t just affect millions of residents — it will likely shape how other states (and maybe the federal government) treat digital assets in the years ahead.