California Assembly Bill 1052, or the “Digital Assets Bill” (formerly the Money Transmission Act), passed a Committee vote with bipartisan support on April 21.
It was introduced by Assembly Member and Democrat Avelino Valencia in February and amended at the end of March.
It aims to protect cryptocurrency users and investors by supporting their right to self-custody their digital assets.
A BILL IN CALIFORNIA TO PROTECT YOUR RIGHT TO SELF-CUSTODY AND ENGAGE IN PEER-TO-PEER TRANSACTIONS PASSES OUT OF COMMITTEE UNANIMOUSLY WITH BI-PARTISAN SUPPORT!
Thank you to Chair @AsmValencia for your leadership and for the opportunity to sponsor and testify in support. pic.twitter.com/tunUKSlPpX
— Dennis Porter (@Dennis_Porter_) April 22, 2025
Protecting Crypto Users’ Rights
AB 1052 authorizes individuals and businesses to accept digital assets as payment and deems them as valid and legal in private transactions.
It also prohibits public entities from restricting digital asset use or imposing special taxes solely on crypto payments and clarifies that this is a statewide matter that applies to all cities in California.
The legislation specifically addresses self-custody of cryptocurrency, stating:
“A public entity shall not prohibit, restrict, or impose any requirements on the use of hardware or a self-hosted wallet to control digital financial assets.”
It also prevents government entities from creating regulations that would restrict or impose requirements on self-custody solutions.
The bill is designed to protect individuals’ rights to control their own private keys and digital assets without government interference.
There is still a long legal path to go, however, and nothing happens fast in the US Congress. Following the Assembly Banking and Finance Committee vote, it passes to the Assembly floor for a full vote by all Assembly members, and then on to a Senate committee, and then the full Senate, before heading to the government for a final yay or nay vote.
It requires a two-thirds vote for passage as it amends the Political Reform Act and makes various technical amendments to the Code of Civil Procedure, Financial Code, and Government Code to implement these provisions.
Strategic Bitcoin Reserve Bill Update
Arizona is the leading state with two strategic Bitcoin reserve bills in the final stages of voting, according to Bitcoin Law’s State Reserve Race tracker.
There have been 46 strategic Bitcoin reserve bills introduced across 26 states, it reported. Following Arizona, legislation in New Hampshire and Texas is next likely to get approved.
Meanwhile, the asset itself hit a six-week high of $88,500 in early trading in Asia on Tuesday as store of value assets continue to attract investors in an accelerating flight from US stocks and the US dollar.
