California updating its Political Reform Act (1974) to include crypto disclosures for public officials
Last Wednesday, Governor Gavin Newsom signed AB 1029 into law. It didn’t make big headlines. Crypto Twitter was too busy reacting to presidential polls, stablecoin rumors, and some ETF filings.
But this was a major win for transparency, accountability—and crypto legitimacy.
If you blinked, you might’ve missed it. But BitAML didn’t. And neither did our Founder & President, Joe Ciccolo, who also serves as Executive Director of the California Blockchain Advocacy Coalition (CBAC). Back in March, CBAC submitted one of the first and strongest letters of support for AB 1029.
Why AB 1029 Is a Big Deal
Let’s start with the basics. The Political Reform Act of 1974 requires California public officials to file detailed financial disclosures (Form 700) covering their investments, income sources, and real estate holdings.
Until now, that list of assets and investments didn’t include crypto.
AB 1029, authored by Assemblymember Valencia, updates that law for the digital age. Starting January 1, 2027, public officials and candidates for certain public offices must disclose cryptocurrency holdings over $2,000—the same threshold that already applies to stocks.
According to CalMatters’ legislative tracking system, AB 1029 formally expands the definition of “investment” under the Political Reform Act to include a digital financial asset, and specifically mandates crypto disclosure starting in 2027
*Read an in depth report about AB 1029 at Calmatters.com
Why does that matter? Because it affirms what many in the industry have been saying for years: crypto is a mainstream financial asset and should be treated with the same transparency standards as stocks, bonds, and real estate.
This is a narrowly scoped, transparency‑ and crypto‑friendly update that closes a loophole in existing law—without creating a burdensome new regulatory regime.
CBAC Was Ahead of the Curve
BitAML’s Joe Ciccolo wears two hats. In addition to leading our compliance advisory firm, he helps shape crypto regulatory and public policy in California through CBAC, a 501(c)(6) trade association advocating for the blockchain, crypto, and Web3 industry.
As early as March 2025, CBAC voiced strong support for AB 1029 in an open letter submitted to lawmakers. That letter didn’t just say “yes”—it laid out the why:
“Transparency is essential to building public trust in both government and emerging technologies. Clear disclosure rules will help dispel misconceptions, prevent conflicts of interest, and ensure that California continues to lead with thoughtful, forward-looking policy.”
Joe himself put it plainly in his LinkedIn post the day the bill was signed:
“This is what smart regulation looks like—modern, balanced, and rooted in transparency.”
What AB 1029 Changes
✅ Transparency & Trust
- Aligns digital financial assets with traditional investments in California law
- Requires disclosure of crypto holdings over $2K on Form 700
- Reduces risk of hidden financial conflicts for public officials
🏛️ Clarity for Innovators
- Sets a clean, enforceable disclosure threshold
- Makes crypto part of the “normal” financial investment conversation
- Provides a blueprint other states could follow
📈 California’s Competitive Edge
- First-in-the-nation transparency law for public officials holding crypto
- Modernizes existing disclosure laws rather than creating an additional regulatory regime Boosts public and voter confidence in innovation
What’s Next for California Crypto Policy?
AB 1029 isn’t the end of the story. California is exploring:
- AB 1180, a pilot program for state payments using stablecoins
- DFAL rollout, which will introduce licensing requirements for certain digital asset financial businesses
- Ongoing CBAC advocacy, where Joe and the team are engaged in shaping how rules actually get implemented
If you’re a crypto startup operating in California, this is a moment to pay attention. The rules are being written—and the people writing them are listening.
Seismic Shifts on the West Coast Will Continue
Last week, California made a quiet but meaningful move toward ethical innovation. AB 1029 helps crypto grow, innovate, and thrive through transparency. It’s thoughtful, forward-looking regulation.
Wondering how policy wins like AB 1029 could influence your governance or compliance model? Let’s explore how to future-proof your startup while regulations evolve. Schedule a free discovery call with BitAML.
