California Assembly Unanimously Passes Bill to Allow Crypto Payments for State Services

California has taken a major step toward integrating cryptocurrency into its public financial infrastructure. On June 2, Assembly Bill 1180 (AB 1180) passed unanimously in the California State Assembly with a 68-0 vote, paving the way for digital assets to be accepted for state-related payments. The bill now moves to the Senate, and if approved and signed by Governor Gavin Newsom, it would take effect on July 1, 2026. The legislation would require the Department of Financial Protection and Innovation (DFPI)—California’s top financial regulator—to create guidelines allowing crypto payments for fees and transactions under the Digital Financial Assets Law (DFAL). The DFPI would also be responsible for supervising crypto businesses through a licensing system and ensuring consumer protection alongside financial innovation. Pilot Program to Run Until 2031 AB 1180, introduced by Democratic Assemblymember Avelino Valencia, proposes a multi-year pilot program to test crypto payments within state agencies. The program would run until January 1, 2031, during which the DFPI would collect data, address technical issues, and assess regulatory challenges. A formal report summarizing all crypto transactions and operational hurdles must be submitted to the state by January 1, 2028. The bill does not seek to make crypto legal tender but defines digital assets as any representation of value used as a medium of exchange under DFAL. Its passage brings California in line with states like Florida , which already accept cryptocurrency for certain state-level obligations. While the bill passed smoothly, it underwent four amendments before final approval. One significant change removed provisions related to ride-sharing companies and vehicle-based transportation services, narrowing the bill’s scope to focus specifically on digital financial asset transactions. California Aiming for Bitcoin Rights AB 1180 complements another piece of legislation making headlines—Assembly Bill 1052, dubbed the “Bitcoin rights” bill. This parallel effort aims to protect Californians’ rights to self-custody their crypto assets and use them as a valid form of payment in private transactions. AB 1052 also prohibits state or local agencies from imposing extra restrictions or taxes solely because an individual uses digital assets as payment. That bill recently passed an assembly committee with an 11-0 vote and is expected to reach the floor for a third reading soon. With 117 merchants in California already accepting Bitcoin, according to BTC Maps, the state’s legislative efforts reflect its growing openness to digital assets. The post California Assembly Unanimously Passes Bill to Allow Crypto Payments for State Services appeared first on TheCoinrise.com .

Source: The Coin Rise