California State Assemblymember Avelino Valencia has amended a money transmission bill to make digital asset rights a primary focus, including digital asset-related investor protections that, if passed, would benefit the state’s 39.4 million residents.
Bill AB 1052 was originally introduced as the “Money Transmission Act” on February 20, 2025, but was amended and renamed simply “Digital Assets” by Democrat lawmaker Valencia, chair of the Banking and Finance Committee.
The bill would authorize an individual or business located in California to accept payment in the form of a “digital financial asset” for the sale of any goods or services. It would also make the use of digital assets as a form of payment in a private transaction a valid and legal consideration.
Furthermore, the bill would ban public entities from prohibiting, restricting, or imposing any requirements on digital asset use or enforcing a tax, withholding, assessment, or other charge on a digital asset “solely because that asset was used as a method of payment.”
Additionally, it expands the scope of California’s Political Reform Act of 1974 to prohibit a public official from issuing, sponsoring, or promoting a digital asset, security, or commodity.
“A public official shall not engage in any transaction or conduct related to a digital asset that creates a conflict of interest with their public duties,” AB 1052 states.
The amended bill received positive feedback from industry advocates.
“California often sets the national blueprint for policy, and if Bitcoin Rights passes here, it can pass anywhere,” said Dennis Porter, CEO of Bitcoin lobby organization Satoshi Action Fund, in a March 30 statement.
He added, “Once passed, this legislation will guarantee nearly 40 million Californians the right to self-custody their digital assets without fear of discrimination.”
Porter also praised the bill’s inclusion of legal frameworks for managing “unclaimed property” for digital assets.
Specifically, AB 1052 would mandate that “intangible property held in a digital asset account” be transferred to the State three years after written or electronic communication to the owner is returned undelivered or the date of the last exercise of ownership interest.
Besides these, it would require the holder of a private key for a digital asset account that has been returned to the state to transfer the digital asset to a custodian designated by the “Controller.”
The digital asset bill is now in the “desk process,” meaning it has been formally introduced and is awaiting its first reading.
Legislative efforts pick up pace in the US
Digital asset-related activity among lawmakers has reached a fever pitch in the United States since the election of pro-crypto President Donald Trump in November of last year—he took office in January 2025.
According to legislation tracking site Bitcoin Law, 95 digital asset-related bills or measures have been introduced at the state level across 35 states.
Among these—as well as the amended digital asset bill—California saw a stablecoin bill introduced on February 2, which aimed to provide more clarity over stablecoin collateral requirements, liquidation processes, redemption and settlement requirements, and security audits.
More recently, the Texas State 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, progress is being made on several stablecoin bills, including the GENIUS Act, which could face a full floor vote in the Senate before the chamber’s next recess—starting the week of April 14—Sen. Cynthia Lummis (R-WY) told reporters last month.
But arguably the biggest digital asset-related development of the year so far was President Trump signing an executive order on March 6 to create a Strategic Bitcoin Reserve and a digital asset stockpile. Initially, both the reserve and stockpile will consist of assets forfeited as part of criminal or civil asset proceedings.
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