The California State Assembly approved Assembly Bill 1180 (AB 1180) on June 2, 2025, with a 68-0 vote. The bill allows state departments to accept digital currency for payments.
It now moves to the California State Senate. If passed there and signed by Governor Gavin Newsom, the bill will take effect on July 1, 2026.
California Assembly Unanimously Passes Crypto Payments Bill. Source: Bitcoin Laws AB 1180 requires the Department of Financial Protection and Innovation (DFPI) to create rules for crypto payments under the Digital Financial Assets Law (DFAL).
This law regulates how digital currencies can be used for state-related transactions. According to DFAL, digital financial assets are defined as digital representations of value used as a medium of exchange, but not recognized as legal tender.
The DFPI regulates financial services and crypto-related businesses in California. All individuals and companies involved in crypto activity in the state must hold a license from DFPI.
DFPI to Report on California Crypto Transactions and Challenges
Under AB 1180, the DFPI must prepare a detailed report by January 1, 2028. The report should list all crypto transactions processed under the program.
It must also explain any technical, operational, or legal issues faced during the rollout. This reporting requirement will help assess how the pilot program is working.
The bill includes a pilot phase that would continue until January 1, 2031. After that, the crypto payments system may move to full implementation depending on results.
AB 1180 has been revised four times since its introduction. One removed section included definitions related to ride-sharing companies and personal transportation services. That portion was excluded from the version passed by the Assembly.
These revisions narrow the bill’s focus to transactions regulated by DFPI. It does not address wider uses of crypto in the state’s economy.
California Crypto Bill Aligns With Trends in Florida, Colorado, Louisiana
If AB 1180 becomes law, California will join states like Florida, Colorado, and Louisiana, where crypto payments are accepted for certain state services. These states use digital assets to process payments for fees, taxes, or licensing.
The California crypto bill would only apply to transactions governed by DFPI. The law does not propose changes to federal currency definitions or recognize crypto as official money.
Instead, it permits the use of digital assets under a state-defined legal framework.
According to BTC Maps, at least 117 businesses in California already accept Bitcoin payments. AB 1180 would expand digital asset usage to public payments, creating an option for crypto users to pay directly for state-regulated services.
Bitcoin Rights Bill AB 1052 Advances Alongside California Crypto Bill
AB 1180 connects to another legislative proposal—AB 1052, also known as the Bitcoin rights bill.
This separate bill defines digital asset self-custody rights and regulates how crypto can be used in private payments.
AB 1052 passed its first committee vote on May 23, 2025, with an 11-0 result. It is now moving forward to its third reading.
AB 1052 would protect the use of crypto in private transactions by making it a valid form of payment. It also bars public agencies from banning or taxing digital assets based only on their payment function.
Together, AB 1180 and AB 1052 represent different parts of California’s crypto regulation framework.
While AB 1180 focuses on crypto payments to government departments, AB 1052 focuses on protecting crypto use between private individuals and businesses.
Both bills remain under review in the legislature. No final decisions have been made yet on their approval or implementation beyond the Assembly level.
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