California’s state legislature has taken a significant step towards embracing cryptocurrency payments by passing Assembly Bill 1180 (AB 1180). This bill, which received unanimous approval from the California State Assembly, authorizes the Department of Financial Protection and Innovation (DFPI) to develop rules allowing state agencies to accept Bitcoin and Ethereum as payment for government fees and services. This move could position California among the most crypto-friendly states in the US if it successfully passes through the Senate and receives Governor Gavin Newsom’s signature. The bill would take effect on July 1, 2026, with a pilot program running until January 2031. Notably, the DFPI will be tasked with tracking all cryptocurrency transactions and reporting findings, including regulatory and technical issues, by 2028.