California is edging closer to embracing cryptocurrency with the passage of Assembly Bill 1180 (AB 1180) in the state’s lower house. The bill, which received a unanimous vote and is now headed for the Senate, would allow state departments to accept digital currencies for fees and transactions under the Digital Financial Assets Law (DFAL).
If AB 1180 is signed into law by Governor Gavin Newsom, it would go into effect on July 1, 2026. The bill, sponsored by Democratic Assemblymember Avelino Valencia, includes a pilot program that would run until Jan. 1, 2031, before becoming fully operational.
California could join states like Florida, Colorado, and Louisiana in accepting crypto payments if AB 1180 is passed. The Department of Financial Protection and Innovation (DFPI) would be required to report on all crypto transactions processed under DFAL by Jan. 1, 2028, including any technical and regulatory challenges encountered.
AB 1180 also complements AB 1052, known as the state’s “Bitcoin rights” bill, which focuses on crypto self-custody rights for residents. The bill aims to establish digital financial assets as a valid form of payment in private transactions and prevent public entities from restricting or taxing digital assets based solely on their use as payment.
Currently, California has 117 merchants accepting Bitcoin payments, according to BTC Maps data. With these legislative initiatives, California is poised to further integrate cryptocurrency into its financial ecosystem.