California Assembly Unanimously Passes Bill to Allow Crypto Payments to State Agencies

In a landmark move toward digital asset adoption, the California State Assembly has unanimously passed a bill that would allow state agencies to accept cryptocurrency for official payments.

Assembly Bill 1180 (AB 1180), introduced by Democratic Assemblymember Avelino Valencia, passed the Assembly floor on June 2 with a sweeping 68-0 vote. The bill now heads to the California Senate for consideration.

What the Bill Proposes

AB 1180 empowers the California Department of Financial Protection and Innovation (DFPI) to create a regulatory framework that allows fees and transactions under the Digital Financial Assets Law (DFAL) to be payable in digital currencies, such as Bitcoin.

The bill defines crypto transactions as “any digital representation of value used as a medium of exchange but not recognized as legal tender.”

Under this proposed legislation:

• A pilot program would begin, running through January 1, 2031.

• If approved by the Senate and signed by Governor Gavin Newsom, the law would take effect July 1, 2026.

• The DFPI would be required to submit a report by January 1, 2028, detailing crypto transactions processed and any technical or regulatory challenges encountered.

The DFPI, California’s top financial watchdog, oversees financial innovation and protects consumers. Any entity conducting crypto-related business in the state must register with and be licensed by the DFPI.

Aligning with Other Crypto-Friendly States

If AB 1180 is signed into law, California would join states like Florida, Colorado, and Louisiana, which have already begun accepting cryptocurrency for specific government services.

Valencia described the measure as a forward-thinking initiative, aligning California with emerging digital economies while boosting government efficiency and financial inclusivity.

AB 1180 Complements California’s “Bitcoin Rights” Bill

AB 1180 works in tandem with AB 1052, known as the “Bitcoin Rights” bill, which lays out digital self-custody rights for California’s nearly 40 million residents.

AB 1052 was recently passed in the Assembly’s first committee with a unanimous 11-0 vote and now awaits a third reading. If enacted, it would:

• Recognize crypto as a legal form of payment in private transactions.

• Prohibit public agencies from imposing restrictions or taxes on crypto solely due to its use as a payment method.

According to BTC Maps, 117 merchants in California currently accept Bitcoin payments — a figure expected to grow if these bills become law.

Amendments and Exclusions

AB 1180 underwent four amendments before passage. A significant change was the removal of language related to ride-sharing and personal vehicle services, which had previously been included for clarity on broader digital economy regulations.

Related: California Assembly Bill 1180 Voting Update – Bitcoin_Laws on X