California Approves Crypto Payment Bill for State Fees: A Step Towards Broader US Regulation

California has passed Assembly Bill 1180, allowing cryptocurrency payments for state fees starting July 1, 2026. The bill, introduced by Assemblymember Avelino Valencia, permits payments in Bitcoin and other digital assets, with guidelines to be developed by the Department of Financial Protection and Innovation. The pilot aims to enhance state finance modernization and potentially refine broader national regulations.

California has made a significant stride towards embracing cryptocurrency as a legitimate payment method for government services. On June 2, the California State Assembly unanimously passed Assembly Bill 1180, which, if signed into law, will enable state agencies to accept digital currencies such as Bitcoin for paying fees and charges under the state's Digital Financial Assets Law (DFAL). This move aims to provide residents with more payment options while fostering innovation in financial services.

The bill, introduced by Assemblymember Avelino Valencia, outlines a phased implementation starting on July 1, 2026, with a pilot program running until January 1, 2031. The Department of Financial Protection and Innovation (DFPI) of California will be responsible for framing the regulations and managing the entire process. By January 1, 2028, the DFPI will submit a report detailing the number of cryptocurrency transfers and any encountered difficulties, ensuring transparency and thorough testing of new technologies.

This development comes amidst a broader trend of increased interest in cryptocurrencies at the federal level. The U.S. Congress is currently considering the Bitcoin Act of 2025 (S.954), which aims to create a Strategic Bitcoin Reserve. If passed, the government would purchase 1 million BTC over five years and hold them for 20 years, acting as a long-term store of value and an economic hedge against inflation. This bill has garnered strong support in both the House and the Senate, indicating a potential shift in the U.S. economy's reliance on digital assets.

Moreover, the global adoption of cryptocurrencies for public services is growing rapidly. For instance, Kazakhstan's central bank has introduced crypto-cards for payment, enabling digital currency usage alongside cash. Similarly, Dubai is collaborating with Crypto.com to allow residents to pay for public services using cryptocurrencies, as part of the city's push towards a cashless society.

In conclusion, the passage of Assembly Bill 1180 signifies a significant step towards integrating cryptocurrencies into California's financial system. As international interest and U.S. support for digital assets continue to rise, cryptocurrencies like Bitcoin are poised to become a ubiquitous part of everyday financial transactions.

References:
[1] https://www.coingabbar.com/en/crypto-currency-news/california-assembly-passes-crypto-payments-bill-unanimously?srsltid=AfmBOoqdbvJYkaieAHOTp9COqIRkQEamZKfx8Ff-W1RmDlnqZlLI5biN