In a landmark decision for cryptocurrency adoption, the California State Assembly has unanimously passed Assembly Bill 1180 (AB 1180) with a 68-0 vote, paving the way for government agencies to accept Bitcoin and other digital currencies as payment for fees . This legislative breakthrough represents a significant step forward in the integration of digital financial assets into mainstream governmental operations.
The Bill’s Journey and Purpose
Assemblymember Avelino Valencia, who presented the bill, described it as a “first-of-its-kind” initiative during his address on the Assembly floor . The legislation aims to establish a pilot program authorizing the Department of Financial Protection and Innovation to accept payments in digital financial assets .
“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,” Valencia stated . “Having gone to school at San Jose State during the time that this technology was being created, I firmly believe this will be fully integrated into our society in the near future.”
California’s Broader Crypto Initiatives
This vote comes amid a series of progressive cryptocurrency legislation in California. Earlier this year, in March 2025, the state introduced Assembly Bill 1052, often referred to as the “Bitcoin Rights Bill,” which aims to safeguard digital asset custody and establish legal protections for cryptocurrency users .
The Bitcoin Rights Bill includes provisions that explicitly recognize the right to self-custody Bitcoin and other digital assets, prohibit government agencies from imposing taxes or restrictions solely based on cryptocurrency payments, and establish a framework for handling unclaimed digital assets .
What This Means for California
If AB 1180 passes the State Senate and becomes law, California would join states like Colorado, Utah, and Louisiana that already accept cryptocurrency payments for government services . The pilot program is designed to study the process and challenges of accepting cryptocurrency payments, potentially serving as a blueprint for statewide integration of digital asset payments .
According to the bill’s author, “AB 1180 puts California at the forefront of digital asset innovation… opening up opportunities to work with digital asset innovators, and putting the state on a path toward the future” .
Next Steps
The bill now advances to the California State Senate for consideration . If implemented, this legislation could significantly influence how other states approach cryptocurrency integration in public financial infrastructure, potentially accelerating mainstream adoption of digital assets across the United States.
