California’s Assembly has approved a new bill that would allow residents to use crypto for state payments, marking a step toward broader crypto adoption.
In a unanimous 68-0 vote, the California State Assembly approved a bill allowing state agencies to accept cryptocurrency as payment. The Senate will now receive the bill.
After passing the state’s lower house unanimously and moving on to the Senate, a bill permitting state departments to accept digital currencies has brought California closer to adopting cryptocurrency.
With a 68-0 vote on its third reading, Assembly Bill 1180 (AB 1180) passed the California State Assembly on June 2. It would mandate that the Department of Financial Protection and Innovation (DFPI) create regulations allowing state fees and transactions under the Digital Financial Assets Law (DFAL) to be paid in cryptocurrency.
California’s regulatory body, the DFPI, monitors financial services, safeguards customers, and encourages ethical innovation. Any person or organization operating a cryptocurrency business in the state needs to apply for a license from the DFPI.
AB 1180 would take effect on July 1, 2026, if it passes the Senate and is signed into law by Governor Gavin Newsom.
Democratic Assemblymember Avelino Valencia, the bill’s proponent, stated that a pilot program would continue until January 1, 2031, when it would be fully operational.
If AB 1180 receives approval, California could potentially follow states like Florida, Colorado, and Louisiana that have recently accepted cryptocurrency payments for specific duties.
According to California’s plan, the DFPI would have to report on all cryptocurrency transactions handled by January 1, 2028, along with any technical or legal issues that arose.
Any digital representation of value used as a means of exchange that is not legal tender is considered a cryptocurrency transaction under DFAL.
AB 1180 underwent four modifications before the California Assembly approved it on June 2.
The most noteworthy exclusion was the portion that attempted to define terms about ride-sharing businesses and private vehicles used for transportation services.
The California Assembly is also developing a “Bitcoin rights” bill.
The goal of AB 1180 is to support AB 1052, the state’s “Bitcoin rights” bill, which aims to grant the state’s almost 40 million citizens the right to crypto self-custody.
The first assembly committee unanimously passed AB 1052 on May 23, sending it to a third reading.
Additionally, the bill would forbid governmental organizations from limiting or taxing digital assets based only on their use as payment, and it would recognize the usage of digital financial assets as a legitimate and lawful form of payment in private transactions.
117 companies in California currently accept Bitcoin payments, per data from BTC Maps.
