The California State Assembly passed a groundbreaking bill, AB 1180, on June 4th with unanimous support. The legislation authorizes state government to accept Bitcoin and other digital currencies as payment methods for fees. Now, the bill moves to the state Senate for review. The bill mandates the Department of Financial Protection and Innovation (DFPI) to submit a comprehensive report outlining cryptocurrency transaction data, technical challenges encountered, and recommendations for future payments using digital financial assets by January 1, 2028. It will sunset on July 1, 2031. This legislation establishes the Digital Financial Assets Law (DFAL), which provides a licensing and regulatory framework for digital finance activity overseen by the DFPI, and prohibits individuals from engaging in digital financial asset business without a license before July 1, 2025.