Bitcoin

California’s lower house passes crypto payments bill

California has taken one more step towards the adoption of Crypto after a bill allowing the State services to accept digital currencies sailed in the lower state of the State with a unanimous vote and is now heading for the Senate.

Bill 1180 of the Assembly (AB 1180), which adopted the Assembly of the State of California on June 2 with a vote of 68-0 on its third reading, would oblige the Ministry of Financial Protection and Innovation (DFPI) to develop rules allowing state costs and transactions under the law on digital financial assets (DFAL) to pay in Crypto.

The DFPI is the California regulatory agency responsible for supervising financial services and protecting consumers while promoting responsible innovation. Individuals and entities carrying out cryptographic commercial activities in the state must obtain a license from the DFPI.

If AB 1180 erases the Senate and is signed by Governor Gavin Newsom, the bill would take over on July 1, 2026.

According to the sponsor of the bill, the Democratic AVELINO Valence assembly, a pilot program would take place until January 1, 2031, when it becomes fully operational.

If AB 1180 is adopted, California could join people like Florida, Colorado and Louisiana who have accepted cryptographic payments for certain obligations in recent years.

California’s bill would require the DFPI to submit a report by January 1, 2028, detailing all the treated cryptographic transactions, in addition to all the technical and regulatory challenges encountered.

Cryptographic transactions under DFAL are defined as any digital representation of the value which is used as a means of exchange, but is not legal.

AB 1180 saw four amendments before being adopted by the California Assembly on June 2.

The most notable exclusion concerned a section which aimed to define terms related to carpooling companies and to personal vehicles used for transport services.

The bill “Bitcoin Rights” also in preparation

AB 1180 seeks to complete AB 1052, known as the Bitcoin “Rights of Bitcoin” of the State, which focuses on the establishment of self-Crypto self-cire rights for nearly 40 million state residents.

AB 1052 was adopted in the first Committee of the Assembly during a unanimous vote 11-0 on May 23 and was sentenced to third reading.

In relation: The California financial regulator warns 7 new types of crypto, AI Scam

The bill would also consider the use of a digital financial asset as a valid and legal payment form in private transactions and prohibit public entities from restricting or taxing digital assets only according to their use as payment.

In total, 117 merchants currently accept Bitcoin payments in California, according to data from BTC cards.

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