Crypto Payments for State Fees Advance in California Legislature

California could soon be allowing crypto payments for state-related transactions after the Assembly unanimously passed a new bill. Assembly Bill 1180 (AB 1180), approved by a 68-0 vote on June 2, now heads to the Senate for further consideration.

Good to know

• AB 1180 could take effect on July 1, 2026.
• A pilot program would run through January 1, 2031.
• DFPI would oversee crypto payments and submit a report by 2028.

If signed into law, AB 1180 would direct the Department of Financial Protection and Innovation (DFPI) to create rules enabling crypto payments for state fees and other transactions under the Digital Financial Assets Law (DFAL). The DFPI, California’s financial regulator, would be responsible for licensing and oversight.

The bill defines crypto under DFAL as any digital asset used as a medium of exchange but not classified as legal tender. AB 1180 positions California to join states like Florida, Colorado, and Louisiana, which have already started accepting crypto for certain payments.

Assemblymember Avelino Valencia, who introduced the bill, said a pilot phase would run until the beginning of 2031. During that time, the DFPI would collect data on all crypto payments and detail any issues in a report due by January 1, 2028.

The Assembly made four amendments before passing the bill. One of them removed language related to ride-sharing and personal vehicle services.

AB 1180 complements another proposal, AB 1052, known as California’s “Bitcoin rights” bill. That measure focuses on protecting residents’ ability to self-custody crypto assets and banning public entities from taxing or restricting digital assets based solely on their use as payment. AB 1052 passed its first committee with an 11-0 vote on May 23 and is heading for a third reading.