California Assembly Passes Bill to Enable Crypto Payments for Government Services

California Assembly Passes Bill to Enable Crypto Payments for Government Services

In a groundbreaking move toward digital finance adoption, the California State Assembly has unanimously approved Assembly Bill 1180 (AB 1180) with a 68–0 vote. The bill would allow state agencies to accept cryptocurrency payments—including Bitcoin and Ethereum—for government fees and services. It now advances to the California State Senate for further review.

Authored by Assemblymember Avelino Valencia, AB 1180 tasks the Department of Financial Protection and Innovation (DFPI) with creating a regulatory framework under the Digital Financial Assets Law. These guidelines will govern how state agencies handle crypto transactions.

If enacted, the bill would go into effect on July 1, 2026, launching a pilot program that runs through January 1, 2031. As part of the program, the DFPI must submit a detailed performance report by January 1, 2028, addressing transaction volume, technological challenges, and implementation success.

This bill complements AB 1052, also known as the "Bitcoin Rights" bill, which seeks to protect self-custody rights for digital asset holders in California. Both bills reflect a strong push toward crypto-friendly legislation in the state.

With these initiatives, California is positioning itself as a national leader in blockchain innovation and crypto regulation, signaling increased institutional support for digital assets in the public sector.

   Key Highlights:

• AB 1180 passed unanimously in California Assembly (68–0).

• Authorizes state agencies to accept Bitcoin, Ethereum for payments.

• Launches pilot program from July 2026 to January 2031.

• DFPI to provide performance report by January 2028.

• Supports broader crypto legislation like AB 1052 ("Bitcoin Rights" bill).