The California State Assembly passed AB 1180 with a unanimous 68-0 vote, allowing the state to accept payments in Bitcoin and other digital currencies.
The bill, described as a “first-of-its-kind” initiative by Assemblymember Avelino Valencia, now heads to the Senate for further deliberation.
This move could set a precedent for cryptocurrency adoption across the U.S., potentially influencing other states to follow suit.
In a groundbreaking move for decentralized finance (DeFi), the California State Assembly voted unanimously on June 3, 2025, to pass Assembly Bill 1180 (AB 1180), allowing state agencies to accept payments in Bitcoin and other digital currencies. The bill, which passed with a resounding 68-0 vote, is now advancing to the California Senate for further consideration. This development marks a significant step toward mainstream adoption of cryptocurrencies in the U.S., potentially reshaping how government transactions are conducted in the world’s fifth-largest economy.
A First-of-Its-Kind InitiativeAssemblymember Avelino Valencia, who introduced AB 1180, presented the bill as a pioneering effort to integrate digital financial assets into state operations. Speaking on the Assembly floor, Valencia stated, “I proudly rise to present AB 1180 that would establish a pilot program authorizing the Department of Financial Protection and Innovation to allow for the payment of fees using digital financial assets. This would be a first of its kind. Very excited about this.” He added, “Having gone to school at San Jose State during the time that this technology was being created, I firmly believe this will be fully integrated into our society in the near future” 1. Valencia’s enthusiasm reflects a growing recognition of DeFi’s potential to streamline financial systems, making them faster and more accessible.
The bill’s unanimous passage in the Assembly underscores California’s progressive stance on cryptocurrency. As Dennis Porter, a notable advocate for cryptocurrency legislation, noted, “This bill serves as a blueprint for potential statewide integration of cryptocurrency payments in California” 2. If the Senate approves AB 1180, California could become a leader in DeFi adoption, encouraging other states to explore similar measures.
Market Context and ImplicationsThe passage of AB 1180 comes at a time when the crypto market is showing signs of resilience. According to CoinMarketCap data, Bitcoin was trading at $105,784.21 on June 4, 2025, with a 24-hour trading volume of $45.27 billion, despite a slight 0.35% dip in the last 24 hours 2. Meanwhile, Ethereum, another major cryptocurrency, has seen a 4% increase, trading at $2,610 as of June 3, reflecting a broader market uptrend 3. The table below highlights the performance of top cryptocurrencies around the time of the bill’s passage:
Cryptocurrency Price (USD) 24-Hour Change Trading Volume (USD) Bitcoin (BTC) $105,784.21 -0.35% $45.27 billion Ethereum (ETH) $2,610 +4.00% Not specified XRP Not specified Not specified Not specified
This market stability may have bolstered confidence among California lawmakers, signaling that cryptocurrencies like XRP and others could soon play a larger role in everyday transactions. Posts on X also reflect excitement about the bill, with one user noting, “California just voted 68–0 to allow payments in Bitcoin and digital assets… Wait till Trump and Elon make their move” 4.
A Broader Trend in Crypto LegislationCalifornia’s move is part of a larger wave of cryptocurrency-friendly legislation across the U.S. Earlier this year, the state also advanced Assembly Bill 1052 (AB 1052), which was amended to include protections for self-custody and the legal recognition of digital assets as a payment method 5. Additionally, the U.S. Senate recently advanced the GENIUS Act, a bill aimed at regulating stablecoins, with a 66-32 vote on May 19, 2025, indicating bipartisan support for clearer crypto regulations 6.
However, not all crypto legislation has been smooth sailing. A previous attempt in California to create a “BitLicense” regime was vetoed by Governor Gavin Newsom in 2022, who called it “premature” without further stakeholder input 7. The current bill, AB 1180, seems to have learned from past challenges, focusing on a pilot program to test the waters before full implementation.
What’s Next for DeFi in California?If the Senate passes AB 1180, California could set a national precedent for DeFi integration, encouraging innovation in payment systems while addressing concerns like security and volatility. The state is already home to major crypto firms like Ripple Labs, Solana Labs, and Kraken, and 99 merchants currently accept Bitcoin payments, according to BTC Maps data 5. This existing infrastructure could make the transition smoother, positioning California as a hub for DeFi innovation.
For the average Californian, this bill could mean paying state fees with digital currencies, bypassing traditional banking systems and potentially reducing transaction costs. For the broader DeFi ecosystem, it’s a sign that governments are warming up to the idea of decentralized currencies, even as they navigate the complexities of regulation and adoption.
As the bill moves to the Senate, all eyes will be on whether California can turn this vision into reality—and whether other states will follow its lead in embracing the future of finance.
Key Concepts of California’s Bitcoin Payment Bill
AB 1180 Assembly Bill 1180, passed unanimously (68-0) by the California Assembly, allows state agencies to accept Bitcoin and other digital currencies for payments, marking a bold step toward DeFi integration.
Decentralized Finance (DeFi) DeFi uses blockchain technology to enable financial transactions without intermediaries like banks, offering faster, cheaper, and more accessible payment systems.
Bitcoin as Legal Payment ₿The bill permits Bitcoin https://cryptopress.site/coins/bitcoin-btc/, Ethereum https://cryptopress.site/coins/ethereum-eth/, and other cryptocurrencies like XRP https://cryptopress.site/coins/xrp/ for state fees, potentially reducing transaction costs.
Pilot Program AB 1180 establishes a trial run led by the Department of Financial Protection and Innovation to test crypto payments, ensuring security and efficiency before full adoption.
Senate Next Steps The bill now awaits Senate approval, which could position California as a DeFi leader and inspire other states to embrace digital currencies.
Sources
https://bitcoinethereumnews.com/2025/06/03/california-assembly-passes-bitcoin-payment-bill-in-unanimous-vote/
https://bitcoinethereumnews.com/2025/06/03/california-assembly-accepts-cryptocurrency-payments-bill-heads-to-senate/
https://coindoo.com/2025/06/03/california-assembly-passes-bitcoin-payment-bill-in-unanimous-vote/
https://x.com/Xfinancebull/status/2025-06-03/14:30
https://cointelegraph.com/2025/03/31/california-introduces-bitcoin-rights-in-amended-digital-assets-bill/
https://www.nbcnews.com/2025/05/19/senate-advances-a-major-crypto-regulation-bill-on-a-bipartisan-vote/
https://www.coindesk.com/2022/09/23/california-bitlicense-bill-vetoed-by-gov-gavin-newsom/
The post Bitcoin Payments Get Green Light in California appeared first on Cryptopress.
