California approves bill on crypto payments for government services
California Assembly passes bill to accept crypto for state payments
On June 4, the California State Assembly passed AB 1180 with a unanimous 68-0 vote, advancing legislation that would allow the state government to accept Bitcoin and other digital assets for payments.
The bill now heads to the state Senate for further review, reports Cryptopolitan.
Authored by Assemblymember Avelino Valencia, the bill lays the groundwork for a pilot program under the Department of Financial Protection and Innovation (DFPI), which would authorize the use of digital assets for state fee payments. If passed into law, the measure would sunset on July 1, 2031, following a report due by January 2028 outlining the results of the program.
Modernizing payments with Digital Financial Assets Law
AB 1180 also creates a licensing and regulatory framework known as the Digital Financial Assets Law (DFAL), which will be administered by the DFPI. Starting July 1, 2025, any entity conducting digital financial asset business in California will need to obtain a DFPI license.
The law includes requirements for transaction record-keeping, prohibits unlicensed stablecoin activity, and mandates consumer protection disclosures. Valencia highlighted the bill as a forward-looking step to align state operations with the growing popularity of cryptocurrency and noted that other states like Colorado, Utah, and Louisiana have already adopted crypto payment solutions.
Challenges in crypto-fiat conversion raise concerns
Despite its groundbreaking nature, AB 1180 faces practical hurdles. The California Blockchain Advocacy Coalition cautioned that the state lacks infrastructure to convert crypto to fiat—an essential step given that the state budget is denominated in U.S. dollars.
For example, Colorado uses PayPal’s Currency Hub to accept crypto, adding fees up to 1.83% plus a flat $1 charge. Previous crypto payment bills in California, such as AB 953, AB 3090, and SB 1275, failed to gain traction due to similar logistical issues. While AB 1180 marks real progress, its success will ultimately depend on whether California can create efficient systems to manage, convert, and account for crypto-based transactions.
Recently we wrote that Pakistan is moving closer to formal crypto regulation, with the Pakistan Crypto Council (PCC) initiating efforts to establish a transparent and secure digital asset framework.
