This bitcoin advertisement is on the window of the BP gas station at 751 Sugar Mill Drive in New Smyrna Beach. An 82-year-old woman was recently directed to this machine by a scammer pretending to be FBI, and she deposited $20,000, believing it would be rerouted to her bank account.
Sacramento, California – California is taking a major step toward protecting cryptocurrency investors and ensuring self-custody rights with amendments to Assembly Bill 1052. Originally introduced as the Money Transmission Act, the bill underwent significant changes on March 28, 2025, and is now titled “Digital Assets.”
The revised legislation aims to secure financial freedoms for California’s nearly 40 million residents by preventing public entities from restricting or taxing digital assets based solely on their use as payment. It also formally establishes that digital assets can be used as valid forms of payment in private transactions. Additionally, AB 1052 strengthens the California Political Reform Act of 1974 by barring public officials from engaging in digital asset transactions that could create conflicts of interest.
Assemblymember Avelino Valencia, chair of the Banking and Finance Committee, led the push for these amendments, emphasizing the need for stronger consumer protections in the rapidly growing cryptocurrency space. The bill is currently in the “desk process” awaiting its first reading in the California State Assembly.
The amendments to AB 1052 come as California continues to establish itself as a hub for digital asset innovation. According to BTC Maps, 99 merchants across the state currently accept Bitcoin as a form of payment. Additionally, major cryptocurrency firms such as Ripple Labs, Solana Labs, and Kraken have headquarters or significant operations in California, reflecting the state’s growing involvement in blockchain technology and digital finance.
The push for regulatory clarity on digital assets in California aligns with a broader national movement. Across the United States, nearly 100 Bitcoin-related bills have been introduced at the state level in 35 states, signaling a shift toward recognizing and regulating digital currencies.
Recent legislative advancements include the Texas Senate passing a Bitcoin strategic reserve bill and Kentucky enacting a Bitcoin Rights bill into law. These efforts highlight the increasing role of digital assets in the American economy and the growing demand for legal protections surrounding their use.
Bitcoin, the first decentralized cryptocurrency, was invented in 2008 by an anonymous figure using the pseudonym Satoshi Nakamoto. It was launched as an open-source financial system in 2009, allowing peer-to-peer transactions without the need for traditional banking intermediaries. Since then, Bitcoin has gained significant global adoption, with El Salvador becoming the first country to recognize it as legal tender in 2021.
As California moves forward with AB 1052, the state is positioning itself at the forefront of digital asset regulation, setting a precedent for other states seeking to balance innovation with consumer protection in the evolving financial landscape. Lawmakers and industry leaders will be closely watching as the bill progresses through the legislative process.
