California is taking a major step toward embracing cryptocurrency by advancing Assembly Bill 1180, which would allow digital assets to be used for paying state fees. The bill passed unanimously in the state Assembly with a 68-0 vote and now heads to the Senate for consideration. If signed into law, this measure could put California on the same path as crypto-forward states like Colorado and Florida.
What AB 1180 Means for Crypto in California
Under AB 1180, the Digital Financial Assets Law would enable individuals and businesses to pay certain state fees using cryptocurrencies. The law is scheduled to take effect on July 1, 2026, and would initially run as a pilot program through January 1, 2031.
The California Department of Financial Protection and Innovation (DFPI) will be tasked with developing and overseeing the crypto payment infrastructure. By January 1, 2028, the department must submit a comprehensive report detailing crypto transaction data and any regulatory or technical challenges encountered during the implementation period.
This initiative positions California as a forward-thinking state in digital finance, supporting broader blockchain innovation and potentially simplifying government transactions for tech-savvy residents and businesses.
The Bitcoin Rights Bill: AB 1052
Alongside AB 1180, a companion bill—Assembly Bill 1052, also known as the Bitcoin Rights Bill—is gaining traction. This bill focuses on protecting the rights of crypto users by:
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Supporting self-custody of digital assets
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Prohibiting local governments from imposing restrictions or taxes on the use of cryptocurrency for payments
If both bills become law, California could become a national leader in crypto-friendly policy, paving the way for wider adoption and clearer regulatory frameworks in the digital currency space.
With growing legislative support, California’s approach could redefine how digital assets interact with public services and personal finance, sparking further interest across the U.S.
