California, a pioneering state in numerous revolutions including in the field of technology and finance, is preparing to take a further step forward in the world of crypto.
A bill proposed by Avelino Valencia, a democratic representative and president of the Finance and Banking Committee of the Assembly, could allow nearly 40 million California residents to exercise new digital rights in the financial sector.
A right to autonomous custody of crypto in California
The draft law Assembly Bill 1052, initially introduced on February 20, 2025, under the title of Money Transmission Act, has undergone a significant metamorphosis.
On March 28, Valencia radically modified the text, renaming it simply “Digital Assets”, a change that underscores the new centrality of cryptocurrencies, and in particular Bitcoin (BTC), within the regulatory proposal.
The main objective of the amendments is to strengthen the protections for investors in cryptocurrencies, outlining a clearer and more inclusive legislative framework for the use of these financial instruments.
According to what was stated by Valencia, the goal is to ensure that savers can safeguard and use their digital resources without discrimination or unjustified restrictions.
One of the most revolutionary aspects of the proposal concerns the protection of the right to individual custody of digital assets.
This means that, if the law is passed, every Californian citizen will have the legal right to directly hold their own cryptographic tokens, such as Bitcoin, avoiding the need for intermediaries or centralized entities.
Dennis Porter, CEO of the Satoshi Action Fund, commented enthusiastically on the proposal:
“California often sets the national model for policies. If the Bitcoin Rights pass here, they can pass anywhere.”
Porter emphasizes how this law, once in force, can also have a fundamental influence on the other federal states.
Among the most significant changes introduced by the reformulation of the legislative text is the recognition of digital currencies as a legal and valid form of payment within private transactions.
It is not just a symbolic step. The proposal also includes an explicit ban for public entities from applying specific limitations or taxes on the use of cryptocurrencies as a means of payment.
This measure, if approved, could facilitate the spread of payments in Bitcoin and altre criptovalute, making them a daily choice for consumers and businesses.
As of today, according to the data provided by BTC Maps, there are already 99 merchants in California that accept payments in Bitcoin.
Stop to conflicts of interest for public officials
Another fundamental piece of the legislation concerns the behavior of public officials in relation to the digital sector.
The proposal extends the principles of the Political Reform Act of 1974 to the world of digital assets.
In particular, explicitly prohibiting any public representative from issuing, sponsoring, or promoting cryptocurrencies, digital tokens, or commodities that may give rise to conflicts of interest with their institutional duties.
As specified in a passage of the text:
“A public official must not engage in any transaction or conduct related to a digital asset that creates a conflict of interest with their public duties.”
A regulation designed to ensure transparency and integrity in the management of public affairs, even in the field of technological innovations.
California is not isolated in this regulatory momentum. According to Bitcoin Law, there are as many as 95 Bitcoin-related bill proposals presented at the state level in as many as 35 American states.
Of these, 36 concern the creation of strategic reserves in Bitcoin, and are still active.
Among the most active states is Texas. Where the Senate approved with a wide margin (25 votes in favor against 5) a law for the establishment of a strategic reserve in cryptocurrency on March 6, 2025.
The Kentucky has also done its part. Governor Andy Beshear signed his own Bitcoin Rights Act on March 24, aligning with the protection of the right to self-custody of cryptocurrencies.
At the federal level, the President of the United States Donald Trump has recently signed an executive order to create a Strategic Bitcoin Reserve and a national reserve of digital assets.
Both funds should initially be composed of cryptocurrencies seized in judicial processes.
Important firms participate in the Californian ecosystem
At the heart of this legislative revolution is one of the most active and advanced crypto communities at an international level.
In California hanno sede colossi come Ripple Labs, Solana Labs e Kraken, aziende che da anni guidano l’innovazione nel settore blockchain e FinTech. Il tessuto imprenditoriale dello stato costituisce un terreno fertile per l’attuazione di politiche modernizzate e incisive.
In parallel, on February 2, 2025, a second Californian bill was presented, this time focusing on stablecoin.
The text aims to clarify fundamental mechanisms such as collateralization, liquidation processes, redemption systems, and security audits for these digital assets sometimes considered more stable than traditional cryptocurrencies.
At the moment, the AB 1052 has formally entered the so-called “desk process”, the phase in which a bill, after being formally introduced, is awaiting its first reading in an official setting.
That will be the decisive moment to test the reazione pubblica, the opinione politica, and the potential approval process.
If approved, this law would represent a turning point for the legal and financial future of cryptocurrencies in the United States, consolidating California’s role not only as a high-tech hub, but also as a model of governance for the digital economy of the future.
With the growing attention towards the regulation of the sector in various American states, the game on Bitcoin Rights is only just beginning. In any case, California seems determined to play it well in advance.
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