California Assembly Unanimously Backs Crypto Payments Bill—A Revolution for Government Digital Finance?
AB 1180 empowers the state’s financial regulator to create a crypto payments pilot program and launches a regulatory structure beginning in 2025. The California State Assembly has approved Assembly Bill 1180 with a unanimous vote. The vote, held on June 2, passed with 78 Assembly Members voting in favor, no opposed, and one not voting. Notably, the bill licenses the Department of Financial Protection and Innovation (DFPI) to create a pilot program for utilizing digital monetary assets to pay state fees. Assembly member Avelino Valencia presented the bill, emphasizing its innovative approach.
AB-1180 mandates that DFPI submit a detailed report to the Legislature by January 1, 2028, covering the volume and value of crypto transactions, regulatory obstacles, and recommendations for future integration. The bill establishes the Digital Financial Assets Law (DFAL) and requires individuals to acquire a DFPI license to engage in crypto business within the state starting July 1, 2025. Consumer protections, disclosure guidelines, and stablecoin policies will also take effect on that date. Previous efforts to enact crypto payments legislation in California, such as AB 953 and SB 1275, have failed. AB 39, a new bill introduced, mandates businesses to disclose fees before engaging in digital monetary asset activities with California residents.
With complete Assembly approval for AB 1180, the bill now heads to the California Senate for consideration. If passed, the DFPI will lead a pilot program reshaping how residents interact with the government financially.
