California’s AB-1052 bill secures crypto self-custody rights and prohibits payment-based restrictions.
The bill introduces legal handling for unclaimed digital assets and separates politics from crypto activity.
California has taken legislative steps to protect digital asset rights, introducing a bill that supports self-custody, blocks discrimination on crypto usage, and addresses unclaimed property in the digital space. The bill, titled AB-1052, seeks to establish a legal foundation for digital assets in the state, with provisions that could affect nearly 40 million residents.
In a recent post on X, the nonprofit advocacy group Satoshi Action Fund confirmed that California Assemblymember Avelino Valencia introduced the AB-1052 bill. The legislation was filed earlier as the “Money Transmission Act” on February 20, 2025.
However, it was amended on March 28 and renamed “Digital Assets” to incorporate self-custody protections and regulatory clarity. Valencia chairs the Banking and Finance Committee, which governs financial services regulation in California. The bill is currently being processed at the desk and is awaiting its first reading.
Bill AB-1052 Enters Legislative Process with Payment Protection Measures
AB-1052 affirms the right of individuals to self-custody Bitcoin and other digital assets without restrictions. It blocks public agencies from imposing taxes or discriminatory regulations based solely on the use of digital assets in payments. The bill also acknowledges the use of digital assets as legitimate legal tender in private transactions.
The introduced bill is aimed at protecting digital assets without tough penalties. Another part of the bill introduces a structure of abandoned assets. According to this part, the responsibility of the licensed individuals is to prevent confusion.
In addition, the bill includes language that prohibits public officials from promoting any cryptocurrency, security, or commodity. This move modifies California’s existing Political Reform Act of 1974, creating separation between public duties and digital asset activities. One section reads that public officials shall not engage in transactions involving digital assets that could cause a conflict of interest.
According to a recent update by BTC Maps, a total of 1035 US locations accept Bitcoin payments. Ripple Labs, Solana Labs, and Kraken are key digital asset firms headquartered in the state. In addition, California legislators introduced a separate stablecoin bill on February 2, 2025. It addresses collateral, liquidation, redemption, and audit requirements for stablecoins.
Tracking Bitcoin-related bills, 95 of them have already been filed in 35 different states. Just recently, Texas and Kentucky have already passed Bitcoin reserve and right bills. This development follows a recent executive order signed by President-elect Donald Trump, commissioning the formation of a Strategic Bitcoin Reserve (SBR).