California Set to Join Crypto-Friendly States with New Digital Payments Law
Crypto Regulation Update – California is taking bold steps toward crypto adoption, following the unanimous passage of Assembly Bill 1180 (AB 1180) by the California State Assembly on June 2, with a 68-0 vote. The bill now advances to the State Senate, potentially positioning California as a leading crypto-friendly state in the U.S.
If signed into law by Governor Gavin Newsom, AB 1180 would empower the Department of Financial Protection and Innovation (DFPI) to develop rules allowing state fees and transactions under the Digital Financial Assets Law (DFAL) to be paid in cryptocurrencies. The law would take effect on July 1, 2026, and include a pilot program running until January 1, 2031, according to bill sponsor Assemblymember Avelino Valencia.
California Follows the Lead of Other Crypto-Forward States
California would join Florida, Colorado, and Louisiana, which already permit certain government-related crypto payments. The DFPI, the state’s primary financial watchdog, would also be required to submit a report by January 1, 2028, detailing all crypto transactions, along with any technical or regulatory challenges encountered during implementation.
Crypto payments under DFAL are defined as digital representations of value used as a medium of exchange, but not classified as legal tender.
The bill underwent four amendments before being approved by the Assembly, including the removal of a provision related to ride-sharing and transportation services.
AB 1180 Aligns with California’s “Bitcoin Rights” Bill
AB 1180 is designed to complement AB 1052, dubbed the “Bitcoin rights” bill, which outlines protections for crypto self-custody and affirms the legality of digital assets in private transactions. AB 1052 passed the first Assembly committee with an 11-0 vote on May 23 and awaits a third reading.
As of now, 117 merchants in California accept Bitcoin, according to BTC Maps—a number likely to grow if these bills become law, creating a more inclusive and progressive financial environment in the state.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
