The “Digital Assets” bill inspired the renaming of the legislation, which was previously known as the Money Transmission Act. The change in name shows a shift toward considering digital currencies like Bitcoin as a means of payment. The law specifically says that the government cannot tax or prohibit digital assets merely because they operate like money. This is a significant victory for cryptocurrency users who desire the freedom to transact without the burden of red tape.
One of the important features of the amended bill is the enhanced California Political Reform Act of 1974, which now bans public officials from engaging in crypto transactions that may cause a conflict of interest. Curbing misuse of public office is a key part of keeping a check on the growth of the crypto space.
Assemblymember Avelino Valencia took the lead on these updates. He is the Banking and Finance Committee Chair. He had pushed for the state to regulate crypto to protect investors and stay ahead of other states. At present, the measure is up for another phase of review before its first official reading in the legislature.
Many important crypto groups are based in California, like Ripple Labs, Solana Labs, and Kraken. According to data, 99 merchants accept Bitcoin for payments in the state, showing that crypto is becoming a normal part of everyday life. Through the updated legislation, California is enhancing its position in leading the U.S. response and regulation of digital assets.
This push isn’t taking place in isolation. Here’s a paraphrased version of 13 words:
35 states across the country have introduced nearly 100 bills related to Bitcoin. For instance, Texas has recently made headlines with a law to set up a Bitcoin strategic reserve, and Kentucky with a law to create Bitcoin rights. States are looking to regulate cryptos, and California’s latest move could be a model for other states.
California aims to make cryptocurrencies comparable to cash, ensure their accessibility for its residents, and establish regulations governing them. It has also issued a blanket on this technology and wants to create standards. When the state implements these changes in the system, it helps the users and solidifies its competence in the arena.
