New Crypto Regulation for California is About to be Officiated! Bill Passes Committee

California has just taken a major step toward redefining how cryptocurrency is treated in the state. On April 21, the state's Assembly Banking and Finance Committee officially passed Assembly Bill 1052, better known as the Digital Assets Bill. 

The legislation, which aims to protect users’ rights to self-custody and validate peer-to-peer crypto payments, is now heading for a full vote on the Assembly floor.

This marks a crucial moment for crypto enthusiasts, businesses, and investors in the Golden State, where innovation meets legislation. But what does this mean for the broader ecosystem? Check in this article!

What is Assembly Bill 1052?

Originally introduced in February by Democratic Assembly Member Avelino Valencia, Assembly Bill 1052 represents a fundamental shift in how digital assets are viewed and handled in California. 

The bill aims to modernize financial laws by replacing the outdated Money Transmission Act with a framework that reflects today's decentralized finance (DeFi) reality.

At the heart of the bill is a clear stance: individuals and businesses should have the right to control their own digital assets without undue interference from public authorities. This includes support for:

• Self-custody rights (holding your own private keys and crypto wallets)
• Peer-to-peer crypto payments
• Freedom to use hardware or self-hosted wallets
• Prohibition of special taxes or restrictions on crypto transactions

In plain terms, this means Californians will soon be able to use and store their digital assets freely, and businesses will be empowered to accept crypto payments without fear of localized government pushback.

Read also: What are Crypto Tax Haven Countries? Lists of Countries for Crypto Investors

How the Bill Could Impact Crypto Users and Businesses

If passed into law, this legislation would make California one of the most progressive crypto jurisdictions in the United States. That’s huge—especially considering how often regulatory uncertainty has scared away startups and innovation.

Key Provisions:

• Self-Custody Protections: Governments would be prohibited from restricting the use of hardware wallets or self-hosted crypto wallets.
• Legitimization of Peer-to-Peer Payments: Individuals can legally transact with digital assets in private deals.
• Ban on Local Crypto Bans: Local governments cannot create their own restrictions that conflict with the state-level policy.

For users involved in cloud mining, this could signal a safer regulatory environment to operate and invest in. When profitability depends on predictable policies and a friendly tax environment, such clarity makes a difference. 

Understanding how to optimize operations, manage assets securely, and even accept payments in crypto becomes much easier under consistent legislation.

Read also: Analyzing the 25% Crypto Tax in Slovenia: Is This Fair?

State-Level Crypto Legislation Gaining Speed

California isn’t alone. States like Arizona, New Hampshire, and Texas are racing to pass their own crypto bills—many of which aim to establish Bitcoin reserves as a hedge against economic uncertainty.

According to the Bitcoin Law’s State Reserve Race Tracker, 46 such bills have been introduced in 26 U.S. states. As the broader financial system grapples with inflation and market instability, digital assets are increasingly seen as safe havens.

Just this week, Bitcoin hit a six-week high of $88,500, underscoring continued interest from both retail and institutional investors.

FAQ

What is Assembly Bill 1052 (AB 1052)?

It’s a California bill that protects crypto users’ rights to self-custody and enables legal peer-to-peer digital asset payments.

Does the bill allow businesses to accept crypto payments?

Yes. The bill allows businesses and individuals to legally accept digital assets as payment.

How does this impact cloud mining?

A more crypto-friendly legal environment could encourage more miners and investors to operate in California, improving profitability and clarity.

What’s the current status of the bill?

It passed the California Assembly Banking and Finance Committee on April 21 and now moves to a full Assembly vote.

Does the bill protect self-hosted wallets?

Yes. It prohibits public entities from banning or restricting hardware or self-hosted crypto wallets.