Key Takeaways

• AB 1180 passed the California State Assembly unanimously (68-0) on June 2nd, 2025.

• The bill would allow state fees and transactions to be paid in cryptocurrencies starting July 1st, 2026, pending Senate and Governor approval.

• A pilot program would run until January 1st, 2031 with a DFPI report due by January 1st, 2028.

• AB 1180 complements AB 1052, the Bitcoin Rights bill, which is also progressing through the legislature.

• California could join states like Colorado, Florida, and Louisiana in accepting crypto for public payments.

What Is AB 1180?

AB 1180 is a legislative proposal that directs the California Department of Financial Protection and Innovation (DFPI) to craft rules enabling digital currencies to be used for paying fees and other state-related transactions under the Digital Financial Assets Law (DFAL).

The California Assembly Has Officially Approved AB 1180

Source: X (@Bitcoin_Laws)

The bill, which received unanimous approval in the State Assembly (68-0) on June 2nd, aims to authorize state departments to accept digital assets for payments under specific regulatory conditions.

With bipartisan support and momentum behind it, the bill is now headed to the California State Senate for consideration.

If approved and signed into law by Governor Gavin Newsom, California could join other states like Colorado and Florida in embracing crypto transactions for public services.

Pilot Program & Timeline

The DFPI is responsible for regulating financial services and consumer protections across California. Crypto businesses operating in the state are required to be licensed by the DFPI. This bill would allow those same businesses, alongside the general public, to potentially pay fees to the department using cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH).

If passed, the legislation would go into effect on July 1st, 2026. A pilot program would run until January 1st, 2031, allowing ample time for testing, evaluation, and the development of infrastructure needed to support crypto payments securely and effectively.

During the pilot period, the DFPI would be required to submit a comprehensive report by January 1st, 2028. This report would detail:

• The number and volume of crypto transactions processed.

• Technical hurdles encountered.

• Regulatory challenges and compliance issues.

Amendments & Changes

Before passing through the Assembly, AB 1180 underwent four amendments.

Among the most notable changes was the removal of a section related to ride-sharing companies and personal vehicles used for transport services. This exclusion signals a more focused scope centered purely on crypto regulation and payment infrastructure.

AB 1180 & AB 1052

AB 1180 works in tandem with AB 1052, commonly referred to as the “Bitcoin Rights” bill. Sponsored to promote self-custody and private use of digital assets, AB 1052 was passed by its first committee with an 11-0 unanimous vote on May 23rd.

AB 1052 Details

Source: California Legislative Information

If AB 1052 becomes law, it will:

• Recognize the legal use of crypto in private transactions.
• Prohibit state and local governments from imposing taxes or restrictions solely based on crypto being used as a payment method.

A Growing Ecosystem

According to BTC Maps, over 117 merchants in California currently accept Bitcoin for goods and services.

From cafes and tech stores to law firms and healthcare providers, crypto adoption is growing steadily. These bills could accelerate that trend by signaling strong institutional support.

Industry & Consumer Implications

For Businesses:

• New opportunities to transact with state agencies in crypto.

• Greater clarity and compliance frameworks from the DFPI.

• A stronger legal foundation for offering crypto payment services.

For Consumers:

• Increased legitimacy of digital assets in everyday transactions.

• Legal assurance for holding and using crypto privately.

• Potential tax and service payment options in digital currencies.

FAQ

What is the purpose of AB 1180?

AB 1180 aims to establish a regulatory framework that allows California state agencies to accept digital currencies for fees and transactions.

When would the law take effect if passed?

The law would become effective on July 1, 2026, with a pilot program running until January 1, 2031.

How does AB 1180 affect individuals and businesses?

It provides legal grounds for both individuals and licensed crypto businesses to make state payments using crypto, while promoting regulatory clarity and consumer protections.

What is the difference between AB 1180 and AB 1052?

AB 1180 addresses the use of crypto in state-level financial transactions. AB 1052 focuses on personal rights related to crypto self-custody and private transactions.