California Assembly Passes Bill to Embrace Crypto Payments

The California State Assembly has unanimously approved Assembly Bill 1180 (AB 1180) with a vote of 68-0, paving the way for crypto payments in state transactions. The bill now heads to the Senate for further consideration.

If enacted, AB 1180 would permit California state departments to accept digital assets, such as Bitcoin, for payments under the Digital Financial Assets Law (DFAL). The law would take effect on July 1, 2026, pending approval by the Senate and the signature of California Governor Gavin Newsom.

California State Assembly Passes Bill

The bill has received support from the California Blockchain Advocacy Coalition. Furthermore, the Assembly’s strong support suggests momentum for its passage, but it still faces hurdles in the Senate and potential scrutiny from Governor Gavin Newsom.

If passed, AB 1180 would classify California as a leader in cryptocurrency adoption. This reflects a growing trend among states to explore the use of digital currencies for official transactions. This development could enhance California’s reputation as a crypto-friendly state and offer more flexibility for state transactions.

AB 1180 stands out from previous crypto payment bills, like AB 953 (2019) and SB 1275 (2022), by targeting a narrower scope of regulated payees. This bill primarily focuses on businesses that already deal with cryptocurrency, setting it apart from earlier attempts. This approach could help AB 1180 succeed where previous bills faced challenges.

While California’s latest move indicates that it welcomes the use of cryptocurrency for payments, it strongly frowns upon defaulters who fail to adhere to operational guidelines. One such example is BlockFi, a troubled crypto lender that went bankrupt due to its exposure to failed crypto exchange FTX.

More U.S. States Embrace Crypto

Since Donald Trump was elected U.S. president, several states have expressed interest in adopting cryptocurrency.

Some of these states are Florida, Colorado, Louisiana, Utah, and Michigan. Governments in these states have explored ways to integrate cryptocurrency into their financial systems and invest in state pension funds.

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