California Passes Bill to Accept Bitcoin for Government Payments by 2026

California’s State Assembly has passed Assembly Bill 1180 (AB 1180), paving the way for crypto payments to be accepted for government fees and services. With a unanimous 68-0 vote, the bill now heads to the Senate, and if approved, it could make California one of the most crypto-friendly states in the U.S. The bill now moves to the Senate for further consideration.

Crypto Payments One Step Closer to Reality

AB 1180 would authorize the California Department of Financial Protection and Innovation (DFPI) to draft rules allowing state agencies to accept cryptocurrencies like Bitcoin and Ethereum as payments under the Digital Financial Assets Law (DFAL). If passed by the Senate and signed by Governor Gavin Newsom, the law will take effect on July 1, 2026, with a pilot program running until January 2031.

The DFPI, which oversees financial services and crypto businesses in the state, would be tasked with tracking all crypto transactions and reporting findings, including regulatory and technical issues, by 2028. This initiative follows similar moves by states like Florida, Colorado, and Louisiana, signaling a growing state-level trend toward blockchain integration.

Additionally, California is the largest investor in MicroStrategy, a company known for its Bitcoin holdings, with its public pension funds holding a $276 million stake, reflecting growing institutional interest in cryptocurrency.

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Bitcoin Rights on the Horizon

The bill also complements AB 1052 as California’s “Bitcoin rights” bill, which passed its first committee in May with unanimous support. That bill aims to solidify crypto self-custody rights and prohibit public agencies from restricting digital assets purely for being used as payments. Together, both bills could establish a broad legal foundation for crypto use in California.

With nearly 117 merchants in the state already accepting Bitcoin, this new legislation could accelerate California’s transition into a blockchain-forward economy, setting a precedent that could ripple across the nation. As terms like crypto adoption, Bitcoin payments, and crypto regulation trend, California might just lead the next wave of mainstream blockchain integration.

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