California Assembly Passes Crypto Payments Bill Unanimously

California Moves Toward Crypto-Friendly Future with New Legislation as U.S. Eyes Strategic Bitcoin Reserve

June 4, 2025 — Sacramento, California — In a landmark development that could reshape how government agencies handle payments, the California State Assembly has passed a bill that would allow state agencies to accept cryptocurrency as a form of payment. Assembly Bill 1180 was approved with overwhelming bipartisan support in a 68-0 vote on June 2, marking a significant step in the state’s efforts to embrace digital financial innovation.

If the bill passes the Senate and is signed into law, California will join a growing number of jurisdictions around the world that are moving toward integrating digital assets into their public service payment infrastructure. Under the proposed framework, California state agencies would be permitted to accept cryptocurrencies such as Bitcoin and Ethereum to cover various fees and charges. The initiative is part of the state’s Digital Financial Assets Law (DFAL), aimed at expanding financial accessibility and modernizing government transactions.

Source: X

Crypto Payments Could Start in 2026

Assembly Bill 1180 outlines a clear timeline for implementation. If approved, the new payment system is slated to begin on July 1, 2026, with a pilot program running through January 1, 2031. Oversight and regulation of the system will fall under the California Department of Financial Protection and Innovation (DFPI), which will be tasked with framing the necessary regulatory guidelines, building infrastructure, and ensuring security compliance.

A significant component of the bill is a mandated interim report. By January 1, 2028, the DFPI must submit a comprehensive evaluation of the system’s performance, including the number of cryptocurrency transactions conducted and any operational challenges encountered during the pilot phase. The requirement is intended to maintain transparency and ensure public accountability during the state’s experimentation with emerging financial technologies.

The bill’s sponsors argue that offering more payment options will help streamline services, reduce processing times, and attract innovation in fintech—a sector where California already leads.

Federal Momentum: The Bitcoin Act of 2025

California's legislative move aligns with a broader shift at the federal level. The U.S. Congress is currently considering The Bitcoin Act of 2025 (S.954), a groundbreaking proposal that could have global economic implications. The legislation, introduced earlier this year, seeks to establish a Strategic Bitcoin Reserve managed by the federal government. If passed, the initiative would involve the U.S. acquiring 1 million BTC over a five-year period and holding the digital assets for at least 20 years.

The aim is to utilize Bitcoin as a long-term store of value, acting as a hedge against inflation and enhancing the resilience of the national economy in an increasingly digital financial landscape. The bill has garnered substantial support from both Republican and Democratic lawmakers, reflecting a growing bipartisan consensus that cryptocurrency could play a central role in the country’s economic future.

Trump’s Push for Digital Asset Leadership

Adding further momentum to the country’s crypto-forward trajectory, President Donald Trump signed an executive order in March 2025 to launch the U.S. Strategic Bitcoin Reserve and Digital Asset Stockpile. According to the administration, the initiative is designed to position the United States as a global leader in digital assets, protect national financial security, and build a foundational reserve of digital wealth.

“The goal is to prepare for a future where decentralized finance will be central to economic activity,” said a senior administration official. “By securing Bitcoin reserves now, we ensure America’s competitive advantage.”

As of today, Bitcoin is trading at $105,366, with a slight 0.08% decrease on CoinMarketCap, reflecting a broader stabilization phase in the market following years of volatility.

Global Adoption: From Dubai to Kazakhstan

The trend toward accepting digital assets for public use is not confined to the United States. Dubai and Kazakhstan are among the international players making bold moves to incorporate cryptocurrencies into their governmental and economic systems.

At the Dubai FinTech Summit on May 12, government officials announced a partnership with Crypto.com, allowing residents to use cryptocurrencies to pay for public services. The initiative is a core part of Dubai's broader plan to transition into a cashless economy and foster a globally recognized digital finance ecosystem.

Similarly, the Central Bank of Kazakhstan recently introduced crypto-enabled payment cards, allowing citizens to spend digital currencies directly at participating merchants. While cash remains accepted, the policy reflects Kazakhstan's intent to balance innovation with financial inclusion by offering hybrid solutions.

These international developments indicate a significant shift in how governments perceive cryptocurrency—not just as speculative assets but as viable tools for operational efficiency, transparency, and financial empowerment.

California’s Role in the Digital Financial Revolution

Back in the United States, California’s foray into crypto acceptance could prove transformative. Home to Silicon Valley and a vibrant fintech ecosystem, the state has long been a bellwether for technological change. AB 1180’s unanimous passage in the Assembly suggests strong legislative enthusiasm for using state-level policy to catalyze broader digital transformation.

Industry experts believe the move could attract blockchain companies, boost economic development, and encourage other states to follow suit. "California is sending a clear message: the future of finance is digital, and we want to be leading the charge," said Jonathan B. Hart, a professor of financial technology at UCLA.

Source: CoinMarketCap

However, challenges remain. Key concerns include transaction volatility, tax reporting obligations, cybersecurity risks, and the need for user education. The DFPI will likely need to create robust frameworks to address these issues during the pilot phase, especially as digital currencies operate under different economic and regulatory dynamics than traditional fiat systems.

Looking Ahead

With AB 1180 now heading to the California State Senate, all eyes are on the legislative calendar. If approved, California could set a precedent for how governments across the U.S. engage with cryptocurrency—not merely as investment tools but as functional mediums for everyday transactions.

Meanwhile, federal initiatives such as the Bitcoin Reserve, combined with executive leadership from the White House, underscore a growing seriousness toward digital assets on the national stage. As both state and federal governments explore these emerging tools, the coming years could redefine the architecture of American finance.

From Sacramento to Washington, and from Dubai to Astana, the momentum is clear: cryptocurrencies are becoming an integral part of the global financial conversation. Whether for paying taxes, funding public services, or protecting against inflation, digital assets are no longer on the fringes—they're stepping into the mainstream.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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