Yeliz Akmaca 
California has made a significant move in cryptocurrency adoption. The State Assembly unanimously passed Assembly Bill 1180 with a 68-0 vote, allowing Bitcoin to be used for state transactions. This development highlights the state’s progress in becoming a leader in crypto regulation. The bill now heads to the California Senate for approval.
California Leads in Crypto Payments
The bill, introduced under the Digital Financial Assets Law (DFAL), enables the use of cryptocurrencies for state services and fee payments. The Department of Financial Protection and Innovation (DFPI) will be responsible for establishing regulations that allow payments via digital assets. As a result, individuals and institutions looking to pay with crypto in California will need to obtain a license from the DFPI.
This regulation also aims to protect consumers by ensuring transparency and accountability in businesses operating with digital assets. The move aligns with broader efforts like the federal Digital Asset Market Structure Clarity Act.
Aligned with Bitcoin Rights Legislation
The bill is supported by the California Blockchain Advocacy Coalition and aligns with the state’s Bitcoin Rights Law, which seeks to ensure that California’s nearly 40 million residents have the right to self-custody their crypto assets.
Democratic Assemblymember Avelino Valencia emphasized the bill’s importance:
“I’m proud to introduce AB 1180. This bill will authorize the Department of Financial Protection and Innovation to launch a pilot program allowing state payments using digital financial assets,” he said. He also highlighted that this initiative is the first of its kind.
States like Florida, Colorado, and Louisiana have taken similar steps, and California’s move could further accelerate crypto adoption across the U.S. Meanwhile, countries like the United Arab Emirates are actively supporting digital payment systems.
If passed by the Senate, the bill will take effect on July 1, 2026, making California one of the first major states to officially accept crypto payments for public services.
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