California lawmakers approve bill allowing crypto payments for state services
A California bill that would allow state departments to accept cryptocurrency payments has passed the State Assembly with a unanimous vote.
On June 2, California lawmakers approved Assembly Bill 1180 (AB 1180) with a 68-0 vote during its third reading. The bill, introduced by Assembly member Avelino Valencia, is now advancing to the State Senate for further consideration.
If enacted, the legislation would require the Department of Financial Protection and Innovation to establish regulations allowing state fees and transactions under the Digital Financial Assets Law to be paid in digital currencies.
The bill proposes a pilot program that would run until Jan. 1, 2031, with full implementation scheduled to begin on July 1, 2026, upon approval by Governor Gavin Newsom.
Under AB 1180, the DFPI would also be responsible for submitting a report detailing the number and types of crypto transactions processed, as well as any technical or regulatory issues encountered during the program, by Jan. 1, 2028.
Digital financial assets under DFAL are defined as any digital representation of value used as a medium of exchange that is not legal tender.
With it, regulators hope to bring California in line with other states such as Florida, Colorado, and Louisiana, which already allow crypto payments for certain government services.
Before passing the Assembly, AB 1180 had several amendments. One key revision to the bill removed language concerning ride-sharing companies and personal vehicles used for transportation services, narrowing the bill’s focus to digital asset transactions under DFAL.
AB 1180 is expected to complement AB 1052, another crypto-focused bill introduced by Valencia, which would protect the use of digital assets in private transactions and enshrine the right to crypto self-custody.
AB 1052 was passed in an Assembly committee with an 11-0 vote on May 23 and is awaiting its third reading. It would prohibit public entities from restricting or taxing digital assets solely based on their use as a form of payment, if passed.
Other measures include preventing state and local governments from imposing limitations on hardware or self-hosted wallets, as well as provisions related to unclaimed digital property and public officials’ involvement with digital assets.
California has seen growing interest in crypto policy amid rising political support for digital assets, with figures like state Senator Ben Allen pushing for pro-crypto representation within the government.
Backing from the electorate also appears to be catching up. A February poll commissioned by Coinbase found that nearly four in five crypto holders in the state would vote for candidates with pro-crypto platforms.
