In a significant move for crypto adoption in the United States, the California State Assembly has unanimously passed Assembly Bill AB 1180, which would enable digital assets — including Bitcoin — to be used for paying government fees and services. All 68 lawmakers present voted in favor, with zero opposition. The bill now moves to the State Senate for further consideration.

🧾 What Does AB 1180 Introduce?

The bill authorizes California’s Department of Financial Protection and Innovation (DFPI) to develop regulations allowing the use of cryptocurrency for payments within state operations. This pilot program is part of a broader legal framework concerning digital financial assets (DFAL – Digital Financial Assets Law).

In practice, any individual or business operating crypto-related services in California would need to obtain a license from DFPI, which will also be responsible for ensuring consumer protection in crypto-based transactions.

🏛️ California Aiming to Lead in Crypto Regulation

The bill was introduced by Assemblymember Avelino Valencia, who called the initiative a “first-of-its-kind” pilot program. According to Valencia, the law could serve as a model for other U.S. states. He stated:

“I’m proud to introduce AB 1180, which authorizes the Department to test accepting payments through digital assets. It’s a major step toward the future of finance.”

🕐 When Will It Take Effect?

If the California Senate approves the bill and it is signed by Governor Gavin Newsom, the law is set to go into effect on July 1, 2026. The bill has already received backing from the California Blockchain Advocacy Coalition, which sees it as a crucial move toward modern and transparent state governance.

🌍 California Joins a Growing Trend

With this initiative, California would join other states such as Colorado, Florida, and Louisiana, which have already implemented crypto payments for taxes or other official fees. Internationally, jurisdictions like the United Arab Emirates are also actively embracing cryptocurrency-based government transactions.

The bill also aligns with California’s broader “Bitcoin Rights” agenda, which aims to guarantee residents the right to own and use digital assets independently — promoting financial sovereignty through technology.

📌 Meanwhile, Federal Crypto Regulation Is Advancing

At the federal level, efforts continue to clarify U.S. crypto regulation. A revised version of the Digital Asset Market Structure bill was reintroduced on May 29 during a session in the U.S. House of Representatives. The bill aims to establish clear rules and a national framework for digital assets across the country.



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