California is getting closer to accepting cryptocurrency after a new bill passed through the state’s lower house with full support on its way to the Senate for approval.
The state’s financial entity, the DFPI (Department of Financial Protection and Innovation), will be in charge of making sure people and businesses using crypto follow the rules. Anyone doing crypto-related business in California will need to get a license from the DFPI.
If the bill passes the Senate and is signed by Governor Gavin Newsom, it will become law starting July 1, 2026. A pilot program would run until January 1, 2031, when it would become permanent.
The DFPI would also need to submit a report by January 1, 2028, explaining how crypto transactions went and what problems, if any, came up with technology or regulations.
This means California could soon join states like Florida, Colorado, and Louisiana that already accept crypto payments for some government services.
The bill also says that using digital assets (like cryptocurrency) for private payments would be completely legal. It would stop government agencies from banning or adding extra taxes just because someone is using crypto as a form of payment.
As California moves toward embracing digital assets, the outcome of this bill could shape how crypto is used not only in government services but also in everyday private transactions. The question now is whether this step will spark broader adoption across the country, or raise new challenges that lawmakers and regulators will need to address.
