The California State Assembly has unanimously approved Assembly Bill 1180 (AB 1180), allowing state agencies to accept cryptocurrency payments for certain fees and transactions. The bill, introduced by Assemblymember Avelino Valencia, passed with a 68–0 vote on June 2 and now moves to the State Senate for further consideration. Key Provisions of AB 1180 If enacted, AB 1180 would require the Department of Financial Protection and Innovation (DFPI) to establish regulations permitting state fees and transactions under the Digital Financial Assets Law (DFAL) to be paid in digital currencies. The legislation proposes a pilot program set to begin on July 1, 2026, and run through January 1, 2031. By January 1, 2028, the DFPI must submit a report detailing the number and value of cryptocurrency transactions processed, as well as any technical or regulatory challenges encountered. California Assembly Position in the National Landscape With AB 1180's passage, California joins other states such as Florida, Colorado, and Louisiana, which have already implemented measures to accept cryptocurrency payments for certain government services. California Assembly's approach aims to modernize payment systems while balancing innovation with consumer protection. Looking Ahead The bill's progression to the State Senate marks a significant step in California's exploration of digital asset integration into public finance. If signed into law, AB 1180 could set a precedent for other states considering similar initiatives. The team will closely monitor the pilot program's outcomes to assess the feasibility and impact of cryptocurrency payments in government transactions.