TL;DR

Democratic lawmaker Avelino Valencia is pushing for a reform to California’s financial legislation that officially recognizes the rights of Bitcoin and crypto users.
The new proposal guarantees self-custody of crypto assets, prohibits discrimination against their use as payment, and protects citizens from regulatory abuse.
California, as a national leader in tech innovation, could set a crucial precedent in pro-crypto legislation across the United States.

The state of California, known for leading technological and social trends, may soon become a legal benchmark for the rights of Bitcoin and cryptocurrency users. Assemblymember Avelino Valencia, Chair of the Banking and Finance Committee, has reworked Bill AB 1052 —originally introduced in February 2025— to place digital asset protection at the heart of the legislative discussion. The bill, now renamed “Digital Assets” aims to ensure that citizens can self-custody their crypto assets without state interference or discrimination. This move would mark a significant shift in public policy toward a more open and crypto-friendly ecosystem.

Furthermore, the proposal legally recognizes the use of cryptocurrencies as a valid form of payment in private transactions. It also prohibits public entities from imposing restrictions or additional taxes simply due to the use of digital assets. This represents a fundamental step toward the normalization of everyday crypto use and the strengthening of a decentralized economy. This legislative decision could also attract more tech companies and Web3 projects to the state, reinforcing its role as a cradle of global financial innovation. At the same time, clear legal guidelines would help prevent regulatory disputes that have plagued other jurisdictions.

Clear Rules and Conflict of Interest Prevention

Another important feature of the proposed bill is its extension into the political arena. The legislation includes amendments to the Political Reform Act of 1974, prohibiting public officials from promoting or conducting operations with digital assets that could create a conflict of interest with their public duties. If passed, this clause would establish vital ethical boundaries to prevent the misuse of insider information or state influence for personal gain.

California thus joins a growing number of U.S. states —including Texas and Kentucky— that are embracing favorable legislation for Bitcoin ownership and usage. In total, 95 crypto-related legislative proposals are currently active across 35 states. At the federal level, President Donald Trump recently signed an executive order to establish a Strategic Bitcoin Reserve, further strengthening the institutionalization of digital assets.

With major players like Ripple Labs, Solana, and Kraken based in California, this bill would not only protect users but would also position the state as a key hub for decentralized financial innovation in the country.

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Filed under: News - @ March 31, 2025 1:21 pm