California Bitcoin Reserves and Cryptocurrency Laws

California Bitcoin Reserves and Cryptocurrency Legislation

California Bitcoin Reserve Overview

No Official Reserves
Regulated Status
Digital Financial Assets Law (AB 39) Effective July 1, 2025

California Bitcoin Reserves

California Legislative Breakdown

State	BTC Reserves	% of Global Holdings	Legal Status	Last Updated	Key Laws and Regulations
California (CA)	No Official Reserves	0%	Regulated	2025-05-24	Assembly Bill 39 (Digital Financial Assets Law, 2023): Effective July 1, 2025, requires licensing for digital asset businesses; includes consumer protections, stablecoin regulations, and compliance requirements Senate Bill 401 (2023): Limits Bitcoin ATMs to $1,000/day transactions, requires disclosures, effective January 1, 2025 Bitcoin Rights Bill (Proposed, 2025): Introduced by Assemblyman Valencia, protects self-custody and prohibits discrimination against Bitcoin use, passed committee unanimously Assembly Bill 2658 (2018): Defines blockchain and crypto terms for legal implementation No state income tax on crypto gains; federal capital gains tax (15–20%) applies ~3.9M residents (~10% of population) use crypto; $40B in transactions (2023–2024, est.) DFPI no-action letters exempt certain digital currency businesses (e.g., P2P platforms, ATMs) from money transmission licensing No specific legislation for state-held Bitcoin reserves as of 2025

California Bitcoin Reserve Status

Current status: NO OFFICIAL RESERVES

California has not established a state Bitcoin reserve, focusing instead on a comprehensive regulatory framework for digital assets. The Digital Financial Assets Law (AB 39) and related legislation prioritize consumer protection and market integrity, while a proposed Bitcoin Rights bill aims to protect self-custody for nearly 40 million residents.

No funds have been allocated for Bitcoin reserves. California’s regulatory focus is on licensing and compliance for digital asset businesses rather than state-held cryptocurrency reserves.

4/23/2025

COMMITTEE PASSED

Bitcoin Rights bill, introduced by Assemblyman Valencia, passed the California Assembly Banking and Finance Committee unanimously, protecting self-custody and prohibiting discrimination against Bitcoin use.

10/13/2023

SIGNED INTO LAW

Governor Gavin Newsom signed Assembly Bill 39 (Digital Financial Assets Law) and Senate Bill 401, establishing a licensing regime for digital asset businesses and limiting Bitcoin ATM transactions to $1,000/day, effective July 1, 2025, and January 1, 2025, respectively.

9/3/2023

SENATE PASSED

Assembly Bill 39 (Digital Financial Assets Law) passed the Senate Appropriations Committee, moving to Governor Newsom’s desk for approval.

9/28/2018

SIGNED INTO LAW

Assembly Bill 2658 signed, amending California legislation to define blockchain and crypto terms, creating legal grounds for their implementation.

California Bitcoin Reserves and Cryptocurrency Legislation

California Bitcoin Reserve Overview