California Goes Full Crypto: AB 1180 Clears 68-0 Vote for Digital Payments

The California State Assembly has taken a major step towards mainstreaming cryptocurrency with a 68-0 vote in favor of Assembly...

Written by: Arslan Butt • Wednesday, June 4, 2025 • 2 min read

• Last updated: Wednesday, June 4, 2025

Quick overview

The California State Assembly unanimously passed Assembly Bill 1180, allowing state agencies to accept cryptocurrency payments.
The bill mandates the Department of Financial Protection and Innovation to establish rules for crypto transactions under the Digital Financial Assets Law.
If approved by the Senate and signed by the Governor, AB 1180 will take effect on July 1, 2026, with a pilot program running until 2031.
California's approach to cryptocurrency aims to balance innovation with consumer protection, positioning the state as a leader in the crypto economy.

The California State Assembly has taken a major step towards mainstreaming cryptocurrency with a 68-0 vote in favor of Assembly Bill 1180 (AB 1180). The bill allows state agencies to accept digital currencies for payments, as California continues to warm up to blockchain-based financial technology. Now it heads to the Senate.

AB 1180 requires the Department of Financial Protection and Innovation (DFPI) to create rules for state fees and transactions to be paid in cryptocurrencies under the Digital Financial Assets Law (DFAL). The DFPI regulates financial services and protects consumers in California, and all crypto businesses must be licensed.

If passed by the Senate and signed by Governor Gavin Newsom, the bill will go into effect July 1, 2026.

AB 1180 Key Provisions and Timeline

The bill’s author, Assemblymember Avelino Valencia, outlined a pilot program to run until January 1, 2031 before full implementation. AB 1180 also requires the DFPI to produce a report by January 1, 2028 summarizing all crypto transactions processed and any regulatory or technical issues.

Key points:

Defines crypto transactions as digital assets used for exchange but not legal tender
Four amendments were made before final passage, excluding ride-sharing and personal vehicles regulations
Complements AB 1052, California’s “Bitcoin rights” bill, which protects crypto self-custody rights for nearly 40 million Californians
California is taking a cautious but steady approach to integrating cryptocurrencies into its public finance system.

California Joins Other States in Crypto Adoption

With AB 1180’s passage, California will join states like Florida, Colorado and Louisiana that already allow crypto payments for certain state obligations. According to BTC Maps, 117 merchants in California currently accept Bitcoin, as consumer and business adoption grows.

Other California crypto highlights:

AB 1052 recognizes digital assets as valid private payment methods and prohibits taxation based on payment use
DFPI oversight balances innovation with consumer protection
California’s framework is a national model for digital asset integration

By embracing digital currencies, California is positioning itself as a leader in the crypto economy.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.