On June 2, the California State Assembly unanimously passed Assembly Bill 1180, which now moves to the California Senate for consideration. The bill would require the Department of Financial Protection and Innovation (DFPI) to adopt regulations permitting payments required under the California Digital Financial Assets Law (DFAL) to be made using digital assets. If enacted, the law would take effect on July 1, 2026.

The DFAL currently prohibits companies from engaging in digital financial asset business activity with California residents without a license from the DFPI. In addition to directing the DFPI to implement crypto payment acceptance, the bill would require the DFPI to submit a report to the Legislature by January 1, 2028. The report must include the number and value of cryptocurrency transactions processed, technical and regulatory challenges encountered, and recommendations for allowing digital asset payments under other laws and to other state agencies.

Putting It Into Practice: California’s AB 1180 reflects a growing legislative interest in incorporating digital assets into regulatory and operational frameworks (previously discussed here and here). While limited to obligations under the DFAL, the bill could serve as a blueprint for other jurisdictions considering crypto adoption in public-sector payments. We will continue monitoring this space for updates.

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