• AB 1052 is set to legally recognize digital assets as payment and safeguard your crypto self-custody rights.
• To ensure fairness, the bill also stops public officials from endorsing digital assets if they have a vested interest.

Get ready, California! The Golden State is on the verge of making history as potentially the first in the nation to guarantee digital asset freedoms for its massive population of nearly 40 million. This exciting development is all thanks to a significant update to Assembly Bill 1052. 

Formerly known as the “Money Transmission Act,” the newly christened “Digital Assets” legislation signals a major leap forward in officially acknowledging Bitcoin [BTC] and the rights of crypto owners.

Amended on March 28th through the efforts of Assembly member Avelino Valencia, this updated bill not only secures your right to self-custody of your digital assets but also formally recognizes Bitcoin and other digital currencies as legitimate payment methods in private transactions.

Key Protections You’ll Get Under California Bill AB 1052

With the revised bill, transacting in crypto becomes simpler and more official! Individuals and businesses throughout California will be able to freely accept crypto as payment for goods and services, and these transactions will be legally recognized as valid.

Importantly, public entities won’t be allowed to place restrictions or special taxes on digital assets just because they are used for payments.

The legislation also protects your right to manage your own crypto. Californians can rest easy knowing they can store their digital assets using hardware or self-hosted wallets without government interference.

AB 1052 also sets clear ethical standards by prohibiting public officials from promoting or sponsoring digital assets in situations where their personal interests might conflict with their public duty.

This crucial step aims to build greater public trust in the way our government interacts with the evolving world of financial technology.

Another significant provision addresses what happens to digital assets that are forgotten or left behind. If a crypto account lies dormant for more than three years, these assets could potentially revert to the state as unclaimed property.

In such cases, holders will need to transfer the digital property and its associated private keys, if they are available, to a qualified custodian chosen by the state controller by the year 2027.

Dennis Porter, CEO of Satoshi Action Fund, highlighted the far-reaching impact of this bill, noting, “If Bitcoin Rights passes here, it can pass anywhere.”

Part of a Growing National Trend

California is now in the company of states like Texas and Kentucky, all moving forward with pro-Bitcoin legislation. Across 35 states, we’re seeing nearly 100 crypto-friendly bills being introduced, indicating a broad shift in perception and policy.

This bill, with its clear stance on digital asset rights, could also make California even more attractive to big players in the crypto world, especially given that companies like Ripple, Solana Labs, and Kraken already call the state home.

Bitcoin Price Check

As of writing, Bitcoin is trading just above $81,400, having dipped slightly by 1.3% in the last 24 hours.

While the price remains a bit up and down after hitting a high of $83,500 last week, it seems institutional confidence is holding strong, boosted by this increasing regulatory clarity in key U.S. markets.

Source: TradingView