California’s Amended Digital Assets Act Would Protect Crypto Payments, Self-Custody

A member of the California State Assembly has an amendment introduced Against a recently introduced money transmission account that would protect the assets of the residents of the state to use cryptocurrencies As a way of payment.

Introduced for the first time by Democrat Senator Laura Richardson on 20 February as the Money transmission lawThe bill had mainly been concerned with the requirement of digital wallet Providers who are active in California to “take certain actions” to guarantee the security of their products, including the use of two-factor authentication.

Introduced on Friday, the new amendment of Democrat Assembly -member Avelencia refers to the bill as the Digital Actives Act and adds various new clauses that protect the use of cryptocurrency in California.

The most important focus is on the authorization of private individuals and companies in California to accept cryptocurrencies as payment for goods and services, as well as in payments between private individuals.

Added to this, the amendment also prohibits “public entities to prohibit, limit or impose that use,” while the State also prevents the state of California imposing taxes on the use of crypto as payment for goods and services.

Related to this is a clause that, as Satoshi Action Fund CEO and co-founder Dennis Potter Decrypt“Al explicitly confirms the right of individuals to connect their bitcoin and digital assets themselves.”

According to Potter, this ensures that residents can manage their cryptocurrencies independently, without sending their tokens to a centralized wallet or guardianship.

“New legal protection”

Although the changed bill may not introduce anything that many cryptocurrency users do not yet do, Potter argued that its introduction is very important for California and the position on Crypto.

He explained: “These provisions introduce new legal protection and frameworks that had not previously been codified in the California law, as a result of which important new elements were added to the approach of the state to digital assets.”

Other provisions in the legislative proposal include a provision that California’s non -exceived property rights would apply to crypto – which means that exchanges, for example, should transfer to the state in the event that the corresponding customer has been inactive for at least three years and does not respond.

The change also broadens the application of the Political Reform Act from 1974 to Crypto, and as such prohibits “an official of publishing, sponsoring or promoting a digital active, safety or raw material.”

According to Potter, the intention of this provision is “to prevent conflicts of interest and to maintain the integrity of the public office”, something that was important for Assembly member of Valencia.

Potter said: “By prohibiting civil servants to issue, sponsor or promote digital assets, effects or raw materials, the bill is intended to ensure that civil servants do not use their positions in order not to influence the market or benefit from such promotions or to benefit from such promotions.”

The latter section can also be the reaction of California-what a predominantly democratic controlled state is-op de official Trump (Trump), the Solana-Based Meme -Mint that the American President Donald Trump was launched before he was in place on January 20.

Although there is no state of a state officer in California who openly promotes or launches a cryptocurrency, the inclusion of the ban could serve as a sweetener for democrats who are otherwise reluctant to promote the use of digital currencies.

A bill with a similar, albeit the federal ban on crypto promotion is also placed for the congress, although both rooms that are controlled by the Republicans has the almost zero chance of passing, at least not before the 2026 mid -term.

In one tweetThe Satoshi Action Fund defended the bill and said that if California passes it on, “nearly 40 million Americans are entitled to self -assured protection.”

The Satoshi Action Fund, a non-profit organization Bitcoin interest organization Founded by former alumni of the first Trump administrationhas been an important role in meeting legislators in recent months and encouraging other states to adopt pro -bitcoin and -Crypto legislation.

The recently Had a hand In the approval of a law in Kentucky that establishes the right of individuals on self -coasts crypto, while it is also confirmed that neither mining rewards nor rewards are effects.

Likewise it has Credit taken To help shape the discussion about a BTC strategic reserve account in Oklahoma, which recently went to the Senate of the State.

And for Dennis Potter, the introduction of the digital assets account by California, together with other similar accounts, ‘reflects a broader shift’ in the US in the integration of cryptocurrencies such as Bitcoin in older financial and legal systems.

“California, as the fourth largest economy in the world with a gross state product of almost $ 3.9 trillion in 2023, plays a crucial role in setting regulatory trends,” he said. He added that the amended account, “indicates an evolving attitude in which digital currencies are increasingly being seen and legitimate financial instruments that justify regulatory frameworks that both protect consumers and promote innovation.”