California is going to protect cryptocurrencies: New digital asset law in motion

California is going to protect cryptocurrencies: New digital asset law in motion

California is becoming a pioneer in cryptocurrency. The new amended bill, known as Assembly Bill 1052, is awaiting its first reading in the state legislature. Led by Banking and Finance Committee Chairman Avelino Valencia, the legislation makes significant changes to the protection of digital payments and self-custody of cryptocurrencies.

The original title of the bill, "Money Transmission Act," has been changed to "Digital Assets," a clear indication of the broader focus of the legislation. The new revisions include a range of protections designed to promote the legality and security of the use of digital assets.

If the Act passes, individuals and businesses in California will have the legal right to accept payments in digital financial assets for goods and services. It further states that digital assets that are used in private transactions will be considered "valid and legal consideration." Public institutions will be prohibited from restricting or taxing the use of cryptocurrencies based solely on their status as a payment method, which strengthens their legal position.

The law also protects the self-management of crypto assets by prohibiting public entities from imposing any restrictions or requirements on the use of hardware or proprietary wallets to manage digital assets. This means that individuals and businesses will have freedom in how they want to handle cryptocurrencies.

Another important point is that the bill also touches on the issue of unclaimed property. If an account with digital property is not touched for three years, it will be forfeited to the state and the holder will have to transfer the property to a state-designated depository.

The proposal also includes broader legislation aimed at preventing conflicts of interest. The Political Reform Act prevents public officials from promoting digital assets or engaging in transactions that could create a conflict of interest with their public duties.

This proposal, which was introduced back in February, is now in the process of being debated, and its passage could be a significant step toward greater integration of cryptocurrencies into the California economy. At a time when cryptocurrencies are gaining more and more political support, this is a signal that California is not afraid to move forward in this innovative area. Recently, for example, Senator Ben Allen expressed support for pro-bitcoin candidate Dom Bei, who is seeking a seat on CalPERS, the largest public pension fund in the US.

California can thus become a model for other states on how to effectively regulate and promote the development of digital assets in line with modern technological trends.

*This is not an investment recommendation.

Coingarage team