The Assembly of the state of California unanimously approved in the third reading a bill, which will allow state institutions in the state to accept payments in cryptocurrency.

The bill AB 1180 will be submitted to the Senate for further consideration. If the document is approved by the Senate and signed by the Governor of California, Gavin Newsom), the bill will enter into force on July 1, 2026. The draft law was presented by a member of the Assembly from the Democratic Party Avelino Valencia. Its initiative is aimed at creating a pilot program that will allow the use of digital assets for state fees and transactions. The pilot program will be valid until January 1, 2031.

According to the proposal of Valencia, the Department of Financial Protection and Innovation (DFPI), which is responsible for monitoring financial services and consumer protection, must develop regulatory provisions to simplify the acceptance of payments in cryptocurrencies. These rules should be drawn up in accordance with the Law on Digital Financial Assets.

DFPI must provide a report to the legislative bodies no later than January 1, 2028. It will include information about cryptocurrency transactions, as well as any technical and regulatory difficulties that have arisen. The Department will also give recommendations on the expanded use of digital assets in other state departments.

If California accepts this bill, it can join the states of Florida, Colorado and Louisian, who have already allowed to accept payments in cryptocurrencies for certain services. Several states, including New Hampshire, Arizona and Texas, have already adopted laws on the creation of a state reserve in bitcoins. However, there are states that rejected similar bills: Florida, South Dakota and Weiming.