California has amended its Digital Assets Act, introducing new protections for cryptocurrency use, primarily centered around payments. This bill, originally initiated to enhance security for digital asset providers, now allows individuals and businesses to accept cryptocurrencies for payment and prohibits public entities from restricting such practices. Notably, it affirms individuals' rights to self-custody their digital assets, allowing them to manage cryptocurrencies without relying on centralized custody services. Additionally, the bill applies California's Unclaimed Property Law to cryptocurrencies, requiring exchanges to transfer inactive assets to the state after three years. It also extends the Political Reform Act of 1974 to crypto, preventing officials from promoting digital assets to avoid conflicts of interest. This reflects a significant move towards integrating digital currencies within regulatory frameworks in California.

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