California Assembly Votes 68-0 to Pass Bitcoin Payments Bill
Highlights
- If enacted, California Assembly Bill 1180 would position California as a leader in adopting crypto payments within state operations.
- The bill is supported by the California Blockchain Advocacy Coalition and aligns with California's "Bitcoin Rights" legislation.
- AB 1180 reflects California's broader efforts to integrate digital assets into regulatory frameworks.
The California Assembly has unanimously voted 68-0 for the Assembly Bill 1180, which authorizes states to accept Bitcoin payments. This is a major milestone in permitting crypto payments in the state of California. Moreover, after passing through the Assembly, the bill has now advanced to the Senate for further review.
California Assembly Approves Bitcoin Payments Bill
The Assembly Bill 1180 is pathbreaking as it seeks to integrate crypto payments into state operations. Following this unanimous support from California Assembly members, the bill mandates the Department of Financial Protection and Innovation (DFPI) to establish rules allowing crypto payments for state fees and transactions under the Digital Financial Assets Law (DFAL).
DFPI is California’s primary regulatory body for financial services, and will ensure consumer protection with crypto payments. Thus, any individual or entity engaged in crypto-related business activities within California must secure a license from the DFPI, to operate in the state. The development comes as the Digital Asset Market Clarity Act proceeds with introducing clarity on crypto regulations.
This Bitcoin payments bill gives California a lead among other states in terms of accepting crypto payments and embracing digital assets within state regulatory frameworks. Avelino Valencia, a Democratic assembly member, called this bill a “first-of-its-kind” pilot program. Valencia said:
“I proudly rise to present AB 1180 that would establish a pilot program authorizing the Department of Financial Protection and Innovation to allow for the payment of fees using digital financial assets”.
Senate Clearance Could Make Crypto Payments Bill Effective
After passing through the California Assembly, if the Bitcoin payments bill passes through the Senate and is signed by California Governor Gavin Newsom, it would become effective on July 1, 2026. The bill has also garnered backing from the California Blockchain Advocacy Coalition.
If approved by the Senate, California would join the ranks of states like Florida, Colorado, and Louisiana, which have recently embraced crypto payments for specific obligations. Overseas jurisdictions like UAE are already working actively to promote crypto payments. This bill also aligns with California’s “Bitcoin Rights” legislation, aimed at establishing crypto self-custody rights for the state’s nearly 40 million residents.
Last week, on May 29, during a procedural session, the United States House of Representatives unveiled a revised digital asset market structure bill aimed at enhancing cryptocurrency regulation.
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