A new bill in California aims to let state departments accept digital currencies for fees and transactions. Assembly Bill 1180 (AB 1180) passed the State Assembly on June 2 with a 68-0 vote.
The bill would require the Department of Financial Protection and Innovation (DFPI) to set rules for accepting crypto under the Digital Financial Assets Law (DFAL).
If approved by the Senate and signed by Governor Gavin Newsom, the program would begin full implementation on July 1, 2026, after a pilot period that runs until January 1, 2031.
Role of the DFPI
The DFPI oversees financial services in California. Its job is to protect consumers and promote responsible innovation. Under AB 1180, the DFPI must write regulations to allow state fees and transactions to be paid in digital coins.
The same agency already issues licenses to anyone doing crypto business in the state. As part of the bill, the DFPI will also need to report on how many crypto payments are made, what types of digital assets are used, and any technical or legal issues that come up. That report is due by January 1, 2028.
Details of the Pilot and Timeline
AB 1180 sets up a pilot program that stretches until January 1, 2031. During this period, state agencies would test the process of taking digital financial assets as payment.
If the pilot goes well, the state would move to full implementation on July 1, 2026. This two-step approach allows officials to work out any problems before making the change permanent.
Also Read: Ripple and MoonPay Donate $50K in RLUSD to Support California Wildfire First Responders
The bill defines digital financial assets as any digital form of value used as a medium of exchange that is not official legal tender.
How California Compares to Other States?
With AB 1180, California follows states like Florida, Colorado, and Louisiana. These states already allow certain government services to be paid for with cryptocurrency.
In the bill’s text, lawmakers say the pilot will help the state find out if any new issues arise from using crypto for payments. Supporters believe this move will bring California in line with other states that have embraced digital coins for some fees and transactions.
Support and Opposition
So far, AB 1180 has drawn backing from the California Blockchain Advocacy Coalition. The bill went through four changes before it passed the Assembly.
One of those changes removed a section that tried to define terms related to ride-sharing services and personal vehicles used for hire. Lawmakers decided those details were not needed to let the state accept digital assets.
Growing Institutional Interest
The bill comes at a time when interest in cryptocurrency in California is on the rise. State pension funds have invested $276 million in MicroStrategy, a company known for holding large amounts of Bitcoin. This move by pension funds shows that big investors in the state are already betting on digital assets.
If AB 1180 becomes law, California could lead the way in integrating cryptocurrency into state systems. The pilot program and detailed reporting requirements will help officials watch for any problems.
Also Read: California Court Dismisses Investor Lawsuit In $40,000 $JENNER Meme Coin Class Action Case