California Moves Towards Cryptocurrency Payments for State Agencies
California has taken significant strides towards accepting cryptocurrency as a valid form of payment for state agencies, thanks to the unanimous approval of Assembly Bill 1180 (AB 1180) by the State Assembly on 2 June. The bill secured an impressive 68-0 vote and now awaits consideration by the Senate.
Overview of AB 1180
Authored by Democratic Assembly member Avelino Valencia, AB 1180 grants the Department of Financial Protection and Innovation (DFPI) the authority to establish regulations that would facilitate digital asset payments under the Digital Financial Assets Law (DFAL). If the bill receives the final nod from Governor Gavin Newsom, a pilot program is set to launch from 1 July 2026 and continue until 1 January 2031. Furthermore, the DFPI is required to submit a comprehensive report by 1 January 2028 regarding the program’s outcomes.
Complementary Legislation
This bill is part of a wider initiative to normalise the use of cryptocurrency in California. It complements AB 1052, also supported by Valencia, which aims to protect individuals’ rights to use and maintain their digital assets in private transactions. This complementary bill recently passed an Assembly committee with a unanimous vote of 11-0 on 23 May 2025.
Community Response and Future Implications
The successful passage of AB 1180 has garnered enthusiasm from the cryptocurrency community. Prominent crypto advocate Kyle Chasse praised the bill, emphasising its potential to position California as a pioneer in cryptocurrency adoption at the state level. He voiced his excitement on social media, noting that AB 1180 could lead California to become a crypto-forward state by authorising a pilot programme for crypto payments to state agencies.
Existing Legal Framework for Crypto in California
California’s movement towards cryptocurrency integration is supported by an established legal framework. The 2023 Digital Financial Assets Law (AB 39) was introduced to create licensing regulations for cryptocurrency companies, while Senate Bill 401 aimed to impose limits on daily withdrawals from cryptocurrency ATMs.
Conclusion
As California progresses towards implementing AB 1180, the move to accept cryptocurrency for state payments signals a significant shift in the state’s approach to digital currencies. With the potential for California to lead the nation in cryptocurrency adoption, the next steps hinge on successful passage through the Senate and the Governor’s approval. The implications of such legislative changes could ripple throughout the financial landscape, encouraging a more extensive understanding and acceptance of digital assets in both public and private sectors.
