California’s State Assembly has unanimously passed Assembly Bill 1180 (AB 1180), paving the way for residents to pay for state services with Bitcoin and other cryptocurrencies. This historic decision positions California as a potential leader in blockchain adoption, signaling a shift toward modernizing financial systems in the Golden State.
State Assembly Clears Bitcoin Service Bill
The journey to AB 1180’s passage began when Assembly member Avelino Valencia introduced the bill, aiming to integrate digital currencies into state transactions. On June 2, 2025, the Assembly approved it with a resounding 68-0 vote, reflecting strong bipartisan support.
The bill authorizes the Department of Financial Protection and Innovation (DFPI) to create rules for accepting cryptocurrencies, like Bitcoin and Ethereum, under the Digital Financial Assets Law. A pilot program is scheduled to commence on July 1, 2026, and will run until January 1, 2031. The DFPI is tasked with reporting on transactions and challenges by 2028.
The bill now heads to the California State Senate for review. If approved, it will require a two-thirds majority vote due to amendments affecting existing laws. After Senate approval, it must be signed by Governor Gavin Newsom to take effect as law. The process may be rigorous, but the unanimous Assembly vote suggests momentum is building. Previous attempts, like Senate Bill 1275 in 2022, failed to advance, making AB 1180’s progress a significant milestone.
The U.S. Embraces Bitcoin
The U.S. outlook on Bitcoin has been observed to be increasingly positive, driven by federal and state initiatives. President Trump’s March 2025 Executive Order established a Strategic Bitcoin Reserve, utilizing over 207,000 BTC ($17 billion) from forfeitures, which signaled federal recognition of the apex coin as a reserve asset.
While Arizona became the first U.S. state to pass legislation creating a Strategic Bitcoin Reserve in April 2025, Senator Cynthia Lummis proposed the BITCOIN Act, aiming to acquire one million BTC over five years.
AB 1180’s unanimous passage in the Assembly marks a significant milestone for cryptocurrency in California.
Meanwhile, Bitcoin is trading at approximately $105,000 with a 24-hour trading volume of $45.99 billion and a Market Capitalization of $2.08 trillion, representing a Bitcoin dominance of 60.89% in the global crypto market, which has a total market cap of $3.44 trillion, per CoinMarketCap.
