California has taken a significant step towards accepting cryptocurrency for state transactions. The California State Assembly unanimously approved AB 1180 on June 2nd, paving the way for digital asset payments, including Bitcoin. This bill would enable state departments to accept these assets for government-related transactions under the Digital Financial Assets Law (DFAL). If signed into law by Governor Gavin Newsom and cleared by the Senate, AB 1180 is expected to take effect in July 2026. It would mandate the California Department of Financial Protection and Innovation (DFPI) to establish rules for accepting crypto payments as part of a pilot program until January 1, 2031. The DFPI will also submit a report covering all crypto transactions and challenges encountered by 2028.