California has introduced a groundbreaking amendment to the Money Transmission Act, now renamed the “Digital assets” bill, to safeguard Bitcoin and cryptocurrency investor rights. Assembly Bill 1052, initially proposed on February 20, 2025, has been revised by Democrat Avelino Valencia to include protections for Bitcoin (BTC) and crypto investors. The amendment ensures self-custody rights for California’s 40 million residents, setting a national precedent for policy. The bill also legitimizes digital financial assets as valid forms of payment in private transactions and prohibits public entities from taxing digital assets based solely on their use in payments. Furthermore, the bill expands the Political Reform Act of 1974 to prevent public officials from engaging in activities that conflict with their duties related to digital assets. With 99 merchants currently accepting Bitcoin payments in California, the state has become a hub for cryptocurrency adoption. Ripple Labs, Solana Labs, and Kraken are among the major crypto firms headquartered in California. This move aligns with the trend of Bitcoin-related bills emerging at the state level across the U.S., with 95 bills introduced in 35 states, including Texas and Kentucky passing significant Bitcoin-related legislation. Moreover, US President Donald Trump recently signed an executive order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile, emphasizing the growing importance of cryptocurrencies in mainstream policy. This development signifies a crucial step towards mainstream adoption and regulation of digital assets in the U.S.