California's AB 1180 passed the State Assembly unanimously, which has paved the way for crypto acceptance in government payments.
The bill proposes a pilot program from July 2026 to January 2031 that will allow state agencies to accept crypto payments.
An accountability structure requires the DFPI to report on the program's success by January 2028.
AB 1180, alongside AB 1052 ("Bitcoin Rights" bill), is geared towards mainstreaming crypto for both public and private transactions in California.
Strong political and public support for crypto in California increases the likelihood of AB 1180 becoming law.
California is making headlines in the crypto space, especially as it moves to officially accept crypto for government payments.
On 2 June, the California State Assembly passed Assembly Bill 1180 (AB 1180) with a unanimous 68-0 vote.
This stands as overwhelming support across party lines, and the bill, introduced by Assemblymember Avelino Valencia, is now on its way to the State Senate for further deliberation.
If passed, California will become one of the major U.S. states allowing residents to pay government fees with digital assets.
AB 1180 requires California’s Department of Financial Protection and Innovation (DFPI) to implement laws that would allow state agencies to accept crypto payments under the Digital Financial Assets Law (DFAL).
The California assembly bill
The bill lays out a pilot program to test the system and is expected to run from 1 July 2026 until 1 January 2031.
During this time, state departments could start processing fees and transactions in assets like Bitcoin.
One important part of the bill is its accountability structure. The DFPI will be responsible for producing a complete report by 1 January 2028, which will show the total number and types of crypto transactions conducted, technical or operational difficulties encountered and regulatory hurdles or ambiguities that may require attention.
The reporting requirement makes sure of transparency and provides legislators with data to assess the program’s success.
The move represents a growing trend of crypto normalization in the United States. California, which is often viewed as a bellwether for tech and policy trends, is joining states like Florida, Colorado and Louisiana.
All of these states have accepted crypto in one form or another for certain government services.
More than 117 merchants in California currently accept Bitcoin as a payment method, according to BTC Maps.
If the government starts to accept digital assets, it could help push even more adoption by reducing the uncertainty around crypto payments.
AB 1180 isn’t California’s only crypto-focused bill.
Assemblymember Valencia is also behind Assembly Bill 1052 (AB 1052), which is commonly referred to as the "Bitcoin Rights" bill.
This bill seeks to protect the rights of Californians to self-custody digital assets and use them in private transactions.
The AB 1052 passed its first committee hearing on May 23 with a unanimous 11-0 vote, and is expected to proceed to a third reading.
If passed, AB 1052 would prevent public entities from taxing or restricting digital assets and recognize crypto as a valid form of private payment.
Together, AB 1180 and AB 1052 would make crypto the perfect tool for both public services and private commerce.
Crypto is gaining solid ground in the crypto space among lawmakers and voters alike.
For example, a February 2025 poll by Coinbase revealed that 80% of crypto holders in California would back candidates who support crypto.
This increasing support for crypto at the grassroots is being matched by political leaders as well.
For example, State Senator Ben Allen and other lawmakers are more and more vocal in crypto.
This means that we may see more blockchain-friendly proposals in the near future.
So far, AB 1180 now heads to the California State Senate, where it will undergo further readings and possible amendments.
If it passes, the final step will be Governor Newsom’s signature.
Considering the current outlook on crypto and how successfully the bill has passed so far, the bill stands a strong chance of becoming law.
If that happens, the pilot program will go live in 2026 and make California one of the first states to integrate crypto into its government operations.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.