The California State Assembly is unanimous AB 1180 adopted, a bill with which government agencies can accept Bitcoin and other digital assets as a payment for certain regulation costs.
Written by Assembly member Avelencia (D-Aanheim), the legislation on 3 June cleared the assembly floor with a decisively 78–0 STEM (2 NV) and is now being assessed by the Senate Rules Committee.
If determined, the account would require the Californian Ministry of Financial Protection and Innovation to develop rules that can be used to regulate companies regulated on the basis of the digital financial assets legislation to pay license costs using digital assets. The pilot program would be launched on July 1, 2026 and run until 1 January 2031.
“AB 1180 brings California first in innovation of digital asset,” Valencia said In an earlier hearing of the committee. “It will serve as a blueprint for integration of the entire state.”
Keep pace with the crypto-news rigid states
The Push of California follows in the footsteps of Colorado, Utah and Louisiana, who already accept crypto payments for certain government services.
Colorado, for example, makes crypto tax payments possible via PayPal service, so that users charge a flat $ 1 plus 1.83% per transaction.
Just like that model, the California system would convert digital payments into US dollars after receipt, which avoided the direct exposure of the state to the volatility of the crypto market.
The program was designed as a test bed of five years. By January 2028, DFPI must submit An interim report that evaluates the effectiveness of the system, operational costs, fraud or abuse risks and public feedback.
If successful, the pilot could pave the way for broader crypto acceptance at other government agencies.
Strategic implications for the California Crypto Ecosystem
The passage of the bill is especially relevant to the growing crypto sector of the state. California is the home of large blockchain companies such as Ripple, Solana Labs and Kraken, many of which have to navigate from complex and expensive regulatory license processes.
By calling in crypto allowances, the state can streamline compliance for these companies and indicate its openness for technological innovation in financial services.
Crypto processors such as Bitpay, Coinbase Commerce and PayPal are now potential contenders for a lucrative state contract. The exact provider is determined by a purchasing process led by DFPI.
However, not everyone is on board. Consumer interest groups and tax watchdogs have expressed concern about transaction costs, volatility and the environmental footprint of crypto -mining. The laws have hinted that the Senate could introduce the adjustments to consumer protection, such as tariff caps or reimbursement mechanisms, to tackle these risks.
Political momentum for crypto -rights
The bill is part of a broader legislative push of Valencia, which is also improving AB 1052A so-called “Bitcoin rights” bill that aims to anchor protection for self-insurance, junction operation and peer-to-peer transactions in the state law. Supported by the National Crypto Advocacy Group Satoshi Action Fund, the California measure positions as a contradictory for federal regulating ambiguity.
“If Bitcoin rights pass here, they can pass anywhere,” said Dennis Porter, CEO of the Satoshi Action Fund, in an interview with Politico.
The Senate is expected to seize AB 1180 later this summer. If it passes and is signed by Governor Gavin Newsom, the DFPI begins to develop the Crypto payment system in 2026, with a view to the use of the state opposite the end of the decade.
The experiment can shape the future of public finances, not only in California, but also nationally. As Valencia Put it“California cannot afford to fall behind.”
