California is one step closer to embracing crypto for state transactions. On June 2, Assembly Bill 1180 (AB 1180) was unanimously approved by the California State Assembly with a vote of 68-0. The bill will be considered by the Senate for additional approval.
If signed into law, AB 1180 will allow state departments to accept digital assets, like Bitcoin, for payments related to the Digital Financial Assets Law (DFAL). The law would take effect on July 1, 2026, if it gets the green light from the Senate and Governor Gavin Newsom.
The bill requires California’s Department of Financial Protection and Innovation (DFPI) to create rules for accepting crypto payments. The pilot program will last until January 1, 2031. DFPI will deliver a report in 2028 that covers all crypto transactions and the difficulties they found.
AB 1180 is designed to complement another proposed bill, AB 1052—dubbed the “Bitcoin rights” bill. This bill supports crypto self-custody rights and aims to protect private crypto payments from government interference or extra taxes. It passed its first committee stage on May 23 with an 11-0 vote.
As of now, 117 California merchants already accept Bitcoin, according to BTC Maps. With nearly 40 million residents, California’s embrace of crypto could have a big impact.
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