California Moves to Recognize Bitcoin Self-Custody in New Legislation

California lawmakers are taking steps to define cryptocurrency rights with AB-1052, known as the “Bitcoin Rights” bill. Assemblymember Juan Carrillo Valencia, chair of the Banking and Finance Committee, introduced the legislation, aiming to protect self-custody rights for digital asset holders. The nonprofit Satoshi Action Fund announced the bill’s introduction on March 29 through a post on X.

The organization expressed its support, stating, “We are proud to officially announce that ‘Bitcoin Rights’ has been introduced in the California Assembly by the Chair of Banking and Finance – Assemblyman Valencia. Once passed, nearly 40 million Americans will have their right to self-custody protected!”

The bill includes legal guidelines on managing unclaimed digital property, which Satoshi Action Fund fully supports. The nonprofit, focused on digital asset advocacy, collaborates with lawmakers and industry leaders to push for financial freedom and property rights in cryptocurrency regulations.

AB-1052 outlines key provisions for digital asset protections. It explicitly confirms the right to self-custody Bitcoin and other cryptocurrencies while prohibiting public agencies from imposing taxes or restrictions based on asset use in payments. The bill also introduces a legal framework for handling unclaimed digital assets, requiring licensed custodians to manage them instead of leaving them in administrative limbo.

Another aspect of the legislation seeks to amend the Political Reform Act of 1974. Under the proposed changes, public officials would be prohibited from issuing, endorsing, or promoting any digital asset, security, or commodity, aiming to keep political influence separate from emerging financial technologies.

Supporters argue the bill is a crucial step in strengthening property rights in the digital space. Some believe AB-1052 could influence other states to introduce similar legislation, potentially shaping national discussions on cryptocurrency regulations.