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The California State Assembly has advanced a bill that would allow cryptocurrency payments for state fees.
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If signed into law by Gov. Gavin Newsom, AB 1180 would kick off a five-year pilot program.
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AB 1180 is one-half of a broader legislative cryptocurrency agenda being pushed by Assemblymember Avelino Valencia.
Much of the discussion surrounding cryptocurrency adoption in U.S. states over the past few months has centered on strategic Bitcoin reserves. But it is far from the only way states are working to embrace cryptocurrencies.
The California State Assembly has advanced a bill that would allow cryptocurrency payments for state fees.
Assembly Bill 1180 passed the lower house on June 2 after a unanimous 78-0 vote on its third reading and is now headed to the Senate.
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If signed into law by Gov. Gavin Newsom, the bill would initiate a five-year pilot program from July 1, 2026, to July 1, 2031, to be developed and regulated by the state Department of Financial Protection and Innovation.
The pilot program will also include an interim report to be submitted on Jan. 1, 2028, detailing the volume of transactions processed, challenges faced, and recommendations for additional state fee payments that can be made using cryptocurrencies.
Developing the regulations and preparing the report is estimated to cost the state at least $150,000.
“This measure would allow California to keep pace with evolving consumer preferences,” Assemblyman Avelino Valencia, the bill’s sponsor, said. “AB 1180 will serve as a blueprint for a potential statewide integration of cryptocurrency payments, opening up opportunities to work with digital asset innovators, and putting the state on a path toward the future.”
The California Blockchain Advocacy Coalition shared similar sentiments endorsing the bill.
“By gathering data on cryptocurrency transactions, California can make informed decisions about expanding digital asset integration across other state agencies, potentially leading to greater efficiency and accessibility in government services,” the group said.
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Enacting the bill will see California join the likes of Colorado, Florida, Louisiana and Utah in accepting cryptocurrency payments. These states accept and convert cryptocurrency to dollars with the aid of payment processors. PayPal, for example, is used by Colorado and Utah. But relying on these payment processors attracts additional fees.
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