California Approves Cryptocurrency Payments for Government Services

California’s legislature has taken a major step towards incorporating cryptocurrency into government services, as Assembly Bill 1180 cleared the State Assembly with a unanimous vote of 68-0. The bill, introduced by Democrat Avelino Valencia, directs the Department of Financial Protection and Innovation (DFPI) to develop rules enabling digital asset usage for state fees and transactions under California’s Digital Financial Assets Law (DFAL). If the Senate approves the bill and Governor Gavin Newsom signs it into law, the new regulations will take effect in July 2026 with a five-year pilot program through January 2031.