California has taken another step towards accepting cryptocurrency, with a bill allowing state government departments to accept digital currencies passing unanimously in the state Assembly and now heading to the Senate.
Assembly Bill 1180 (AB 1180) passed its third reading in the California Assembly on June 2 with a vote of 68-0. The bill requires the Department of Financial Protection and Innovation (DFPI) to establish rules that allow the use of cryptocurrency for paying state government fees and conducting transactions under the Digital Financial Assets Law (DFAL).
The DFPI is California's regulatory agency responsible for overseeing financial services, protecting consumers, and promoting responsible innovation. Individuals and entities conducting cryptocurrency business activities in the state must obtain a license from the DFPI.
🇺🇸 JUST IN: California Assembly passes bill to allow the state to receive payments in Bitcoin and digital currencies. It passed 68-0, and now heads to the Senate. pic.twitter.com/3JWXlpuEWh
If AB 1180 passes in the Senate and is signed into law by Governor Gavin Newsom, the bill will take effect on July 1, 2026.
According to the bill's sponsor, Democratic Assemblymember Avelino Valencia, a pilot program will run until January 1, 2031, at which point full implementation will occur.
If AB 1180 is passed, California could join states like Florida, Colorado, and Louisiana, which have recently accepted cryptocurrency payments for certain obligations.
The California bill requires the DFPI to submit a report by January 1, 2028, detailing all cryptocurrency transactions processed and any technical and regulatory challenges encountered.
Under the DFAL, cryptocurrency transactions are defined as any digital representation of value used as a medium of exchange, but not legal tender.
AB 1180 underwent four revisions before being passed by the California Assembly on June 2.
The most notable cut involved a section that attempted to define terms related to ride-sharing companies and personal vehicles used for transportation services.
AB 1180 is intended to complement AB 1052, the state's "Bitcoin Rights" bill, which focuses on establishing cryptocurrency self-custody rights for California's nearly 40 million residents.
AB 1052 passed its first Assembly committee with a unanimous vote of 11-0 on May 23 and has been ordered for a third reading.
The bill also recognizes the use of digital financial assets as a valid and legal form of payment in private transactions and prohibits public entities from restricting or taxing digital assets solely because of their use as a payment method.
According to BTC Maps data, there are currently 117 merchants in California that accept Bitcoin payments.
Related: Senator Lummis: U.S. military leadership supports establishing a Bitcoin (BTC) strategic reserve
Original article: “California Assembly Passes Bill to Allow State Government to Accept Cryptocurrency Payments”
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