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California’s recent amendment to Assembly Bill 1052 is positioning the state at the forefront of digital asset legislation, transforming how cryptocurrencies are perceived and utilized.
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This bill not only recognizes digital currencies as valid payment options but also ensures the fundamental rights of cryptocurrency users, making it a significant leap for the industry.
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Quote from Dennis Porter, CEO of Satoshi Action Fund: “If Bitcoin Rights passes here, it can pass anywhere,” underscoring the bill’s potential nationwide influence.
California’s AB 1052 legalizes crypto payments and self-custody rights, marking a significant step towards broader acceptance of digital assets in the U.S.
Key protections under California Bill AB 1052
Under the revised bill, individuals and businesses across California can accept crypto as payment for goods and services, with such transactions recognized as legally valid.
Public entities are barred from restricting or taxing digital assets solely because they are used as payment.
The legislation also ensures that Californians can freely store their digital assets using hardware or self-hosted wallets without interference.
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AB 1052 introduces a firm line on ethical conduct by banning public officials from promoting or sponsoring digital assets in ways that present conflicts of interest.
This move is designed to enhance trust in how government engages with emerging financial technologies.
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Another key provision addresses unclaimed digital assets. If a crypto account remains inactive for over three years, the assets may escheat to the state.
In such cases, holders must transfer the digital property and its private keys, if available, to a qualified custodian designated by the state controller by 2027.
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Dennis Porter, CEO of Satoshi Action Fund, emphasized the bill’s broader implications, stating, “If Bitcoin Rights passes here, it can pass anywhere.”
Aligning with a national shift
California joins states like Texas and Kentucky in passing pro-Bitcoin legislation, as crypto-friendly bills reach nearly 100 across 35 states.
The bill’s clarity around digital asset rights may also attract further institutional interest to California, home to Ripple, Solana Labs, and Kraken.
Bitcoin price update
Bitcoin traded just above $81,400 at press time, slipping 1.3% in the past 24 hours.
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While price action remains choppy following last week’s peak of $83,500, institutional sentiment appears strong as legislative clarity grows across key U.S. markets.

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Source: TradingView
Conclusion
California’s AB 1052 is a landmark bill that not only legitimizes cryptocurrency in private transactions but also solidifies the user’s rights to self-custody. As more states consider similar legislation, the future of digital assets looks brighter, signaling potential for further growth and adoption within the United States.
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