California is moving closer to officially embracing cryptocurrency, following the unanimous passage of Assembly Bill 1180 (AB 1180) in the State Assembly.
Approved with a 68-0 vote on June 2, the bill now advances to the Senate for further consideration, marking a significant step in the state’s push to modernize its approach to digital finance.
🇺🇸 JUST IN: California Assembly passes bill to allow the state to receive payments in Bitcoin and digital currencies.
It passed 68-0, and now heads to the Senate. pic.twitter.com/3JWXlpuEWh
— Bitcoin Laws (@Bitcoin_Laws) June 3, 2025
If enacted, AB 1180 would task the Department of Financial Protection and Innovation (DFPI) with drafting regulations that allow select state fees and transactions under the Digital Financial Assets Law (DFAL) to be paid using digital currencies. This move signals growing institutional acceptance of crypto as a viable medium for public sector transactions.
As California’s primary financial regulator, the DFPI plays a central role in licensing and overseeing crypto-related businesses. Its dual mission is to protect consumers while promoting responsible financial innovation—a balance that this bill aims to support through thoughtful regulation.
Should AB 1180 clear the Senate and receive Governor Gavin Newsom’s signature, it would take effect on July 1, 2026. The bill outlines a pilot program that will run through January 1, 2031, after which full implementation could follow. According to its author, Assemblymember Avelino Valencia, this phased approach allows time to evaluate and refine the system before statewide adoption.
To ensure transparency and oversight, the DFPI would be required to submit a comprehensive report by January 1, 2028. This report would detail the volume and types of crypto transactions processed, as well as any technical or regulatory hurdles faced during the pilot phase.
Crypto transactions, as defined by the bill, refer to digital representations of value used for exchange but not classified as legal tender. Notably, the bill underwent four amendments before its passage, including the removal of a section concerning ride-sharing terminology.
In the broader context of growing state-level interest in digital assets, Michigan legislators have introduced four new bills aimed at establishing a clearer legal framework for cryptocurrencies and blockchain technology. These efforts, like California’s, reflect a national trend toward regulating digital finance while fostering innovation and consumer protection.
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