A Californian lawmaker has added Bitcoin (BTC) and crypto rights to the amended Assembly Bill 1052 (AB1052) to recognize digital assets as a payment method, secure self-custody, and protect investors.
California Adds Bitcoin Rights To Digital Asset Bill
California’s Banking and Finance Committee chairman, Avelino Valencia, has introduced significant amendments to his digital assets bill, now known as AB1052. Initially introduced in February, this legislation aims to ensure self-custody rights for residents throughout the state.
On March 28, Representative Valencia presented the updated bill, thereby renaming it from the “Money Transmission Act” to “Digital Assets.” This change highlights its intent to explicitly recognize digital assets as a “valid and legal” payment method for private transactions involving goods and services.
Moreover, the revised bill prohibits public entities from restricting or taxing digital assets solely based on their use for payments. The Satoshi Action Fund has supported this bill, proclaiming, “Once passed, this legislation will guarantee nearly 40 million Californians the right to self-custody their digital assets without fear of discrimination.”
The provisions in AB1052 also aim to create a framework for unclaimed digital assets, preventing lost crypto funds from getting ensnared in what the Satoshi Action Fund describes as “bureaucratic limbo.” The bill underscores that under Unclaimed Property Law, all intangible personal property seemingly owned by an individual escheats to the state if no action is taken by the owner for over three years.
In line with this, the bill provides that “intangible property held in a digital asset account escheats to the state three years after either written or electronic communication to the owner is returned undelivered or the date of the last exercise of ownership interest.”
To ensure compliance, it mandates that the holder of a private key for a digital asset account escheated to the state must transfer the asset to a custodian designated by the Controller. Furthermore, the Controller is required to appoint a custodian by January 1, 2027, as specified in the bill.
Additionally, the legislation seeks to expand the scope of the Political Reform Act of 1974, prohibiting public officials from issuing, sponsoring, or promoting any digital asset, security, or commodity.
US Lawmakers Advance Crypto Legislations
As regulatory dynamics shift in the US, with the Securities and Exchange Commission (SEC) adopting a progressively cooperative stance toward the crypto industry, many states are looking to implement proactive crypto-related legislation to foster growth and protect investors.
In addition to Valencia’s initiative, California has witnessed other legislative attempts to formulate a clear regulatory framework for cryptocurrencies. For instance, in February, Californian lawmaker Tim Grayson introduced Senate Bill 97 (SB97), aimed at amending the Digital Financial Assets Law to offer more comprehensive guidelines regarding Stablecoin approval.
As reported by Bitcoin Laws, this bill broadens the existing evaluation criteria, encompassing aspects such as the issuer’s legally enforceable rights, available redemption assets, potential risks, and statements regarding the stablecoin’s uses.
Meanwhile, Arizona has progressed a bill to enhance the state’s definition of legal tender to encompass cryptocurrencies, including Bitcoin, in addition to traditional currencies. This initiative places Arizona at the forefront of crypto legislation, with two Strategic Bitcoin Reserve (SBR) bills pending a final vote in the House of Representatives.
As of this writing, there are currently 27 active Strategic Bitcoin Reserve bills at the state level across the United States, with Oklahoma and Texas showing significant advancements in their legislative processes.
