California Proposes Digital Assets Act to Protect Crypto Usage

In California, a new amendment to the Money Transmission Act, introduced on Friday by Assembly member Avelino Valencia, aims to protect cryptocurrency usage. Renamed the Digital Assets Act, it authorizes individuals and businesses to accept cryptocurrencies for goods and services and prohibits public entities from restricting this use. The amendment also prevents the state from taxing crypto payments and affirms the right to self-custody Bitcoin and digital assets. According to Satoshi Action Fund CEO Dennis Potter, this introduces new legal protections for nearly 40 million Americans if passed. The bill also applies California's Unclaimed Property Law to crypto and prohibits public officials from promoting digital assets to prevent conflicts of interest. This move reflects a broader shift towards integrating cryptocurrencies into the financial system, as California, with a $3.9 trillion gross state product in 2023, sets regulatory trends.