California updates digital assets bill with new crypto protections

California has amended its money transmission bill to include significant protections for Bitcoin and crypto investors. The focus is on securing self-custody rights for the state’s 40 million residents.

Originally introduced as the Money Transmission Act, the bill has now been renamed ‘Digital Assets.’ It aims to ensure that digital assets are recognised as valid payment forms in private transactions.

The updated legislation guarantees Californians the right to self-custody their digital assets. It also prohibits public entities from restricting or taxing them based solely on their use as payment.

Additionally, it expands the state’s Political Reform Act to prevent public officials from engaging in digital asset transactions that could create conflicts of interest.

California’s bill positions the state as a potential leader in setting national policy for digital assets. Dennis Porter, CEO of Satoshi Action Fund, suggested that if successful, similar legislation could spread across the US.

Currently, 99 merchants in California accept Bitcoin payments. Major crypto firms, such as Ripple Labs and Solana Labs, are also based in the state.

Meanwhile, a stablecoin-related bill has been introduced to provide clearer regulations on stablecoin collateral and security audits. The rise in Bitcoin-related legislation continues across the country, with 95 bills introduced in 35 states.

For more information on these topics, visit diplomacy.edu.