California’s AB-1052 proposes key protections for users of Bitcoin and digital assets

The California Legislature took significant steps to regulate cryptocurrencies by introducing AB-1052, originally known as the Currency Transfer Act.

The bill, a bill led by California Democrat Avelino Valencia, chair of the Banking and Finance Committee, is committed to protecting cryptocurrency users, especially those seeking to maintain control over their digital assets.

AB-1052

According to the latest news from the Satoshi Action Fund, a well-known nonprofit advocacy group, the key provisions of AB-1052 confirm the right to self-compliance between Bitcoin and other digital assets, thus protecting individuals’ ability to own and manage digital properties without government intervention. At the same time, the bill prohibits public institutions from collecting taxes or restrictions based solely on the use of these assets in transactions.

The bill also includes measures to ensure that unclaimed digital property is handled safely by the licensed trustee rather than put in a dilemma. A significant addition to the bill expanded the California Political Reform Act of 1974 to prevent public officials from engaging in transactions or promoting digital assets. This is intended to avoid conflicts of interest and maintain the integrity of public office.

The amendment was conducted on March 28 after its initial introduction in February. The bill is currently in the “desktop process” and is awaiting its first reading at the conference.

If enacted, the legal framework of AB-1052 would protect the self-customer rights of investors and users in California, which is estimated to be 40 million residents.

Bitcoin reserve bills gain attention in U.S. states

Several U.S. states are pushing forward legislation aimed at bringing Bitcoin into national reserves. Data shows that 95 Bitcoin-related bills have been filed in 35 states, with 36 of which are concentrated on the still active Bitcoin reserves.

Arizona, Oklahoma and Texas are states, with ongoing efforts to track on the Strategic Bitcoin Reserve (SBR) bill by the dashboard of Bitcoin Law.

The Arizona SBR bill is in progress, the first committee phase is completed, and now the Chamber of Commerce bill. Oklahoma and Texas, on the other hand, are still in the early stages of the legislative process.