- California’s amended AB 1052 bill seeks to legalize crypto payments for businesses and individuals while protecting self-custody rights.
- It also addresses unclaimed property laws and prevents public officials from engaging in crypto-related conflicts of interest.
California is taking a significant step toward crypto-friendly legislation with a newly amended bill aimed at protecting digital asset payments and self-custody rights. Assembly Bill 1052 (AB 1052), introduced in February and recently revised by Banking and Finance Committee Chair Avelino Valencia, awaits its first reading in the California State Assembly.
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Expanding Crypto Payment Rights
If passed, AB 1052 would allow individuals and businesses to legally accept digital assets as payment for goods and services. The bill clarifies that cryptocurrencies used in private transactions will be considered “valid and legal consideration,” preventing public entities from restricting or taxing them solely based on their status as a payment method. However, state and local governments would not be required to accept digital assets as payment themselves.
Protecting Self-Custody of Digital Assets
A key provision of the bill safeguards the right to self-custody digital assets. It would prohibit public entities from imposing restrictions or requirements on self-hosted wallets or hardware wallets, ensuring that individuals retain control over their digital funds without government interference.
Addressing Unclaimed Property and Conflicts of Interest
AB 1052 also includes provisions regarding unclaimed property laws. Under the proposal, digital asset accounts left inactive for three years would be transferred to a state-designated custodian. Additionally, the bill seeks to prevent conflicts of interest by expanding California’s Political Reform Act. Public officials would be barred from issuing, sponsoring, or promoting digital assets, securities, or commodities in ways that could conflict with their official duties.
Political Support and Growing Adoption
The bill reflects the growing mainstream acceptance of crypto in California’s political landscape. Recently, State Senator Ben Allen endorsed pro-Bitcoin candidate Dom Bei for a seat on the California Public Employees’ Retirement System (CalPERS) board, the nation’s largest public pension fund. A recent Coinbase-backed study also found that nearly 80% of California crypto holders would support a pro-crypto political candidate.
As California continues to refine its stance on digital assets, AB 1052 could set a precedent for other states seeking to integrate cryptocurrencies into their economies while protecting individual financial freedoms.
