California Moves Closer to Crypto Payments

California is inching closer to wider cryptocurrency adoption. Assembly Bill 1180 (AB 1180) sailed through the state's lower house with a unanimous 68-0 vote, paving the way for state departments to accept digital currencies for fees and transactions.

AB 1180: Key Details

The bill mandates the Department of Financial Protection and Innovation (DFPI) to create regulations enabling crypto payments under the Digital Financial Assets Law (DFAL). The DFPI, California's financial services regulator, will oversee this process. The bill, if signed into law by Governor Gavin Newsom, will take effect on July 1, 2026, with a pilot program running until January 1, 2031.

Assemblymember Avelino Valencia, the bill's sponsor, envisions a phased implementation. By January 1, 2028, the DFPI must submit a report detailing all crypto transactions processed, highlighting any technical or regulatory challenges encountered.

Joining Other States

If enacted, California would join states like Florida, Colorado, and Louisiana, which have already begun accepting crypto payments for various obligations. This move signifies growing acceptance of digital currencies within government structures.

What AB 1180 Defines

The bill defines crypto transactions under DFAL as any digital representation of value used as a medium of exchange, excluding legal tender. It's important to note that AB 1180 underwent four amendments before passage, most notably removing a section related to ride-sharing services.

Complementary Legislation: AB 1052

AB 1180 complements AB 1052, also known as the "Bitcoin rights" bill. AB 1052, which passed its first assembly committee with an 11-0 vote, focuses on establishing self-custody rights for Californians. It aims to protect the use of digital financial assets as a payment method in private transactions and prevents public entities from unfairly taxing or restricting them solely based on their use as payment.

Current Adoption: According to BTC Maps data, 117 merchants currently accept Bitcoin payments in California.

Codeum's Role in the Crypto Ecosystem

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