California to Accept Bitcoin for State Payments After a Unanimous 68-0 Vote

California is going forward with a proposal that would allow state agencies to accept payments in Bitcoin and other digital currencies. On June 2, Assembly Bill 1180 (AB 1180) was passed unanimously by the California State Assembly with a 68-0 vote and then the bill would move to the State Senate for further consideration.

If the bill is to be approved by the Senate and it gets signed into law by Governor Gavin Newsom then the bill would take effect on July 1, 2026. By the Digital Financial Assets Law (DFAL), AB 1180 needs the Department of Financial Protection and Innovation (DFPI) to develop a framework for taking cryptocurrency payments.

The DFPI, which oversees financial services in the state, is responsible for developing rules that balance innovation and consumer protection. The bill includes a pilot program that would run until January 1, 2031. During this time, the DFPI must monitor all crypto-related transactions made through the program and submit a report by January 1, 2028.

The report must include information on usage and any technical or regulatory challenges encountered during the starting phase. AB 1180 complements another proposed measure, Assembly Bill 1052, which is referred to as the “Bitcoin rights” bill. AB 1052 is now focused on allowing Californians to hold and use digital assets without interference or extra taxes.

The bill supports self-custody of cryptocurrencies and aims to ensure that digital assets can be used for private payments. It passed its first committee stage with an 11-0 vote on May 23 and is currently scheduled for a third reading. California is contained by nearly 40 million people and has the largest economy in the United States.

A move toward accepting crypto for public transactions could influence how digital assets are used across the country. The state would join others like Florida, Colorado, and Louisiana already accepting cryptocurrency for specific government-related payments.

According to BTC Maps, 117 merchants in California currently accept Bitcoin. With new legislation under review, that number could grow as digital assets become more accepted in both public and private sectors. The final decision on AB 1180 now rests with the Senate and the Governor’s office.