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California Lawmaker Amends Bill to Protect Crypto Self-Custody Rights

California Lawmaker Amends Bill to Protect Crypto Self-Custody Rights

California saw new amendments to Assembly Bill 1052, initially introduced as the Money Transmission Act. On March 28, Democratic lawmaker Avelino Valencia, who chairs the Banking and Finance Committee, revised the bill to incorporate several Bitcoin and crypto-related protections, aiming to secure self-custody rights for the state’s nearly 40 million residents. The bill, now renamed “Digital Assets”, seeks to legitimize the use of digital financial assets in private transactions, recognizing them as a valid form of payment. Additionally, it would prohibit public entities from imposing discriminatory taxes or restrictions on crypto solely based on its use as a payment method. Strengthening Self-Custody and Payment Rights One of the bill’s key provisions guarantees that Californians can self-custody their Bitcoin and other digital assets without the risk of interference. This measure comes amid growing concerns over government overreach and potential regulatory crackdowns on self-hosted wallets. Dennis Porter, CEO of Satoshi Action Fund, hailed the bill as a potential national model. “California often sets the national blueprint for policy, and if Bitcoin Rights passes here, it can pass anywhere,” he said in a March 30 statement . Beyond self-custody, the legislation also prohibits public officials from promoting or transacting in digital assets if it creates a conflict of interest with their official duties. This aims to boost transparency and prevent potential exploitation or market manipulation by policymakers. Crypto-Friendly California Gains Traction The bill comes as California’s crypto scene continues to thrive , with 99 merchants already accepting Bitcoin payments, according to BTC Maps. The state is also home to major crypto firms such as Ripple Labs, Solana Labs, and Kraken, making it a key hub for the industry. The push for crypto regulation in California mirrors broader national trends. In Texas, the Senate passed a Bitcoin strategic reserve bill in a 25-5 vote on March 6, while Kentucky Governor Andy Beshear signed a Bitcoin Rights bill into law on March 24. At the federal level, President Donald Trump recently signed an executive order to create a Strategic Bitcoin Reserve and Digital Asset Stockpile, initially funded by cryptocurrency seized in government criminal cases. The post California Lawmaker Amends Bill to Protect Crypto Self-Custody Rights appeared first on TheCoinrise.com .

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