In a significant move towards integrating digital currencies into public transactions, the California State Assembly unanimously passed Assembly Bill 1180 (AB 1180) on June 2, 2025. The bill, introduced by Democratic Assemblymember Avelino Valencia, authorizes state departments to accept digital assets, such as Bitcoin, for payments under the Digital Financial Assets Law (DFAL). The bill now proceeds to the Senate for further consideration and, if approved, awaits Governor Gavin Newsom’s signature to become law.
Implementation Timeline and Regulatory Framework
If enacted, AB 1180 will initiate a five-year pilot program starting July 1, 2026, through January 1, 2031. The Department of Financial Protection and Innovation (DFPI) will oversee the program, developing regulations to facilitate cryptocurrency payments for state fees and transactions. An interim report detailing transaction volumes and operational challenges is due by January 1, 2028. (benzinga.com)
Assistance with token financing
Broader Legislative Efforts and Industry Reactions
AB 1180 complements Assembly Bill 1052, known as the “Bitcoin Rights” bill, which aims to protect individuals’ rights to self-custody digital assets and use them in private transactions. The crypto community has responded positively, viewing these legislative efforts as steps toward mainstream adoption of digital currencies. Kyle Chassé, a crypto advocate, highlighted the potential for California to lead in crypto adoption. (cryptonews.com.au)
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