Current law requires a license to engage in digital financial asset business activities from July 1, 2026.
The California bill, which allows all businesses and individuals in the state to accept payments for digital assets such as cryptocurrencies and prohibits government restrictions on the use of digital currencies, is being considered by the Legislative Commission.
If passed, the bill would allow California individuals or businesses to accept digital financial assets such as Bitcoin for the sale of goods and services. Additionally, the use of digital financial assets is considered to be used as a valid and legal form of payment in private transactions.
Currently, California law prohibits engaging in digital financial asset business activities from July 1, 2026 unless approved by the Department of Financial Protection and Innovation or exempt from its licensing requirements.
In contrast, the new bill prohibits public agencies from banning, restricting or imposing requirements regarding the use of such digital currency. Additionally, you cannot impose taxes, withholding, valuation, or other claims on digital financial assets based solely on assets used as payment methods.
“This section does not prohibit public agencies from imposing taxes, withholding, valuation, or other claims levied when transactions are made in fiat currency other than digital financial assets,” according to the bill’s text.
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AB 1052 expands the scope of the Political Reform Act of 1974, prohibiting public officials from using their formal positions to make, make or influence government decisions that the official retains economic interests.
The new bill would prohibit civil servants from issuing, sponsoring or promoting digital assets, security or products.
“A civil servant must not engage in transactions or conduct related to digital assets that create conflicts of interest with public obligations,” AB 1052 states.
Gov. Gavin Newsom signed both bills in October 2023 and was scheduled to come into effect on July 1, 2025. However, another bill passed last year delayed the day until July 1, 2026.
