California Assembly Passes Historic Bill to Integrate Digital Assets in State Payments

The California Assembly has unanimously passed AB 1180, a groundbreaking bill that establishes a pilot program for state payments using digital assets. The 68-0 vote signals strong bipartisan support for positioning California as a leader in cryptocurrency innovation.

Democratic assembly member Avelino Valencia championed the legislation, calling it a "first-of-its-kind" initiative. The bill mandates the Department of Financial Protection and Innovation to develop regulations allowing cryptocurrency payments under the Digital Financial Assets Law by 2028.

Unlike previous failed attempts in 2019 and 2022, this legislation includes a comprehensive reporting mechanism. The DFPI must submit transaction data, technical challenges, and expansion recommendations to the legislature before the program sunsets in 2031.