Key Points
- California’s AB 1052 bill recognizes digital assets as legal payment and protects crypto self-custody rights.
- The bill also prevents public officials from promoting digital assets with potential conflicts of interest.
California is on the verge of being the first U.S. state to ensure digital asset freedoms for its almost 40 million inhabitants, courtesy of a comprehensive amendment to Assembly Bill 1052.
The “Money Transmission Act” has been renamed as “Digital Assets,” signifying a significant move towards the legal recognition of Bitcoin (BTC) and crypto ownership rights.
Amendments to the Bill
The bill, amended on March 28th by Assembly member Avelino Valencia, recognizes self-custody as a legal right and designates Bitcoin and other digital assets as legitimate forms of payment in private transactions.
The revised bill allows individuals and businesses in California to accept crypto as payment for goods and services, with these transactions being legally recognized.
The legislation also ensures Californians can freely store their digital assets using hardware or self-hosted wallets without any interference.
AB 1052 also draws a firm line on ethical conduct by barring public officials from promoting or sponsoring digital assets in ways that could lead to conflicts of interest.
Unclaimed Digital Assets
The bill also addresses unclaimed digital assets. If a crypto account remains inactive for over three years, the assets may escheat to the state. In such cases, holders must transfer the digital property and its private keys, if available, to a qualified custodian designated by the state controller by 2027.
CEO of Satoshi Action Fund, Dennis Porter, highlighted the broader implications of the bill, stating, “If Bitcoin Rights passes here, it can pass anywhere.”
California joins states like Texas and Kentucky in passing pro-Bitcoin legislation, as crypto-friendly bills reach nearly 100 across 35 states.
The clarity of the bill around digital asset rights may also attract more institutional interest to California, home to Ripple, Solana Labs, and Kraken.
At press time, Bitcoin traded just above $81,400, slipping 1.3% in the past 24 hours. Despite the choppy price action following last week’s peak of $83,500, institutional sentiment appears strong as legislative clarity grows across key U.S. markets.
