Charles Esther
California has taken a major step toward embracing digital innovation in the financial sector.
The California State Assembly has unanimously passed Assembly Bill 1180 (AB 1180), a bill that would allow state agencies to accept cryptocurrency payments for state services.
The bill passed with a 68-0 vote on June 2, 2025, and is now headed to the Senate for consideration.
If approved, California will join other forward-thinking states like Colorado, Florida, and Louisiana in integrating digital assets into public service payments.
What AB 1180 Means for Californians
AB 1180 mandates the Department of Financial Protection and Innovation (DFPI) to develop regulations that would allow payments under the Digital Financial Assets Law (DFAL) to be made using cryptocurrencies.
This includes state fees and other official transactions.
The DFPI is California’s key regulatory body for financial services, ensuring consumer protection and supporting responsible innovation.
Anyone involved in cryptocurrency business in the state must be licensed by this agency.
The bill outlines that the proposed crypto payment system would begin as a pilot program.
If the Senate approves it and Governor Gavin Newsom signs it into law, the bill would take effect on July 1, 2026.
The pilot phase would run until January 1, 2031, after which full implementation would follow.
Crypto Reporting and Oversight
AB 1180 also includes oversight provisions.
By January 1, 2028, the DFPI will be required to submit a detailed report.
This report will highlight all crypto transactions carried out during the pilot phase, along with any technical or regulatory hurdles encountered.
This transparency ensures that lawmakers and the public stay informed about the progress and challenges of adopting crypto in government operations.
Defining Digital Financial Assets
Under AB 1180, crypto transactions refer to any digital representation of value that serves as a medium of exchange but is not classified as legal tender.
This definition aligns with how most cryptocurrencies function today.
The bill underwent four amendments before its final passage in the Assembly.
One significant change was the removal of a section that attempted to define terms related to ride-sharing and personal vehicles, ensuring the bill remained focused solely on crypto payments.
Complementing the “Bitcoin Rights” Bill
AB 1180 is closely tied to another important piece of legislation—AB 1052, also known as the “Bitcoin rights” bill.
This bill aims to safeguard self-custody rights for crypto holders across California.
It has already passed its first Assembly committee with an 11-0 vote on May 23 and is now scheduled for a third reading.
If passed, AB 1052 would legally recognize the use of digital financial assets in private transactions.
It would also prevent public agencies from restricting or taxing digital assets simply because they are used as a form of payment.
The Road Ahead for Crypto in California
Should both AB 1180 and AB 1052 become law, California would firmly position itself as a leader in blockchain adoption and digital currency usage in the U.S.
With 117 merchants already accepting Bitcoin across the state, according to BTC Maps, the infrastructure and interest are already in place.
These bills could pave the way for wider public and private adoption, laying the foundation for a more digitized financial future.
