Amended IN Assembly April 10, 2025 Amended IN Assembly March 27, 2025 Amended IN Assembly March 17, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1180Introduced by Assembly Member ValenciaFebruary 21, 2025An act to add and repeal Section 3104 to of the Financial Code, relating to digital financial assets.LEGISLATIVE COUNSEL'S DIGESTAB 1180, as amended, Valencia. Department of Financial Protection and Innovation: state payments.The Digital Financial Assets Law (DFAL) generally regulates digital financial asset business activity, including by prohibiting a person from engaging in digital financial asset business activity, or holding itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident, unless the person is licensed by the Department of Financial Protection and Innovation, as prescribed. The DFAL defines digital financial asset to mean a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender, as specified. The DFAL requires, among other charges, an applicant for a license to include a nonrefundable fee with an application, as specified.This bill would require the department to adopt regulations to allow any payment required under the DFAL to be made with digital financial assets and would require the department to submit, on or before January 1, 2027, 2028, a report to the Legislature on those regulations, as specified. This bill would sunset its provisions on January 1, 2031.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 3104 is added to the Financial Code, to read:3104. (a) The department shall adopt regulations to allow any payment required under this division to be made with digital financial assets.(b) On or before January 1, 2027, 2028, the department shall submit a report to the Legislature, pursuant to Section 9795 of the Government Code, containing all of the following:(1) The number and value of cryptocurrency transactions processed.(2) Technical and regulatory challenges encountered.(3) Recommendations for payments under other laws and to other state government agencies to be made using digital financial assets.(c) This section shall be operative only until January 1, 2031, and as of that date is repealed.
Amended IN Assembly April 10, 2025 Amended IN Assembly March 27, 2025 Amended IN Assembly March 17, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1180Introduced by Assembly Member ValenciaFebruary 21, 2025An act to add and repeal Section 3104 to of the Financial Code, relating to digital financial assets.LEGISLATIVE COUNSEL'S DIGESTAB 1180, as amended, Valencia. Department of Financial Protection and Innovation: state payments.The Digital Financial Assets Law (DFAL) generally regulates digital financial asset business activity, including by prohibiting a person from engaging in digital financial asset business activity, or holding itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident, unless the person is licensed by the Department of Financial Protection and Innovation, as prescribed. The DFAL defines digital financial asset to mean a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender, as specified. The DFAL requires, among other charges, an applicant for a license to include a nonrefundable fee with an application, as specified.This bill would require the department to adopt regulations to allow any payment required under the DFAL to be made with digital financial assets and would require the department to submit, on or before January 1, 2027, 2028, a report to the Legislature on those regulations, as specified. This bill would sunset its provisions on January 1, 2031.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Assembly April 10, 2025 Amended IN Assembly March 27, 2025 Amended IN Assembly March 17, 2025
Amended IN Assembly April 10, 2025
Amended IN Assembly March 27, 2025
Amended IN Assembly March 17, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 1180
Introduced by Assembly Member ValenciaFebruary 21, 2025
Introduced by Assembly Member Valencia
February 21, 2025
An act to add and repeal Section 3104 to of the Financial Code, relating to digital financial assets.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1180, as amended, Valencia. Department of Financial Protection and Innovation: state payments.
The Digital Financial Assets Law (DFAL) generally regulates digital financial asset business activity, including by prohibiting a person from engaging in digital financial asset business activity, or holding itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident, unless the person is licensed by the Department of Financial Protection and Innovation, as prescribed. The DFAL defines digital financial asset to mean a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender, as specified. The DFAL requires, among other charges, an applicant for a license to include a nonrefundable fee with an application, as specified.This bill would require the department to adopt regulations to allow any payment required under the DFAL to be made with digital financial assets and would require the department to submit, on or before January 1, 2027, 2028, a report to the Legislature on those regulations, as specified. This bill would sunset its provisions on January 1, 2031.
The Digital Financial Assets Law (DFAL) generally regulates digital financial asset business activity, including by prohibiting a person from engaging in digital financial asset business activity, or holding itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident, unless the person is licensed by the Department of Financial Protection and Innovation, as prescribed. The DFAL defines digital financial asset to mean a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender, as specified. The DFAL requires, among other charges, an applicant for a license to include a nonrefundable fee with an application, as specified.
This bill would require the department to adopt regulations to allow any payment required under the DFAL to be made with digital financial assets and would require the department to submit, on or before January 1, 2027, 2028, a report to the Legislature on those regulations, as specified. This bill would sunset its provisions on January 1, 2031.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 3104 is added to the Financial Code, to read:3104. (a) The department shall adopt regulations to allow any payment required under this division to be made with digital financial assets.(b) On or before January 1, 2027, 2028, the department shall submit a report to the Legislature, pursuant to Section 9795 of the Government Code, containing all of the following:(1) The number and value of cryptocurrency transactions processed.(2) Technical and regulatory challenges encountered.(3) Recommendations for payments under other laws and to other state government agencies to be made using digital financial assets.(c) This section shall be operative only until January 1, 2031, and as of that date is repealed.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 3104 is added to the Financial Code, to read:3104. (a) The department shall adopt regulations to allow any payment required under this division to be made with digital financial assets.(b) On or before January 1, 2027, 2028, the department shall submit a report to the Legislature, pursuant to Section 9795 of the Government Code, containing all of the following:(1) The number and value of cryptocurrency transactions processed.(2) Technical and regulatory challenges encountered.(3) Recommendations for payments under other laws and to other state government agencies to be made using digital financial assets.(c) This section shall be operative only until January 1, 2031, and as of that date is repealed.
SECTION 1. Section 3104 is added to the Financial Code, to read:
### SECTION 1.
3104. (a) The department shall adopt regulations to allow any payment required under this division to be made with digital financial assets.(b) On or before January 1, 2027, 2028, the department shall submit a report to the Legislature, pursuant to Section 9795 of the Government Code, containing all of the following:(1) The number and value of cryptocurrency transactions processed.(2) Technical and regulatory challenges encountered.(3) Recommendations for payments under other laws and to other state government agencies to be made using digital financial assets.(c) This section shall be operative only until January 1, 2031, and as of that date is repealed.
3104. (a) The department shall adopt regulations to allow any payment required under this division to be made with digital financial assets.(b) On or before January 1, 2027, 2028, the department shall submit a report to the Legislature, pursuant to Section 9795 of the Government Code, containing all of the following:(1) The number and value of cryptocurrency transactions processed.(2) Technical and regulatory challenges encountered.(3) Recommendations for payments under other laws and to other state government agencies to be made using digital financial assets.(c) This section shall be operative only until January 1, 2031, and as of that date is repealed.
3104. (a) The department shall adopt regulations to allow any payment required under this division to be made with digital financial assets.(b) On or before January 1, 2027, 2028, the department shall submit a report to the Legislature, pursuant to Section 9795 of the Government Code, containing all of the following:(1) The number and value of cryptocurrency transactions processed.(2) Technical and regulatory challenges encountered.(3) Recommendations for payments under other laws and to other state government agencies to be made using digital financial assets.(c) This section shall be operative only until January 1, 2031, and as of that date is repealed.
3104. (a) The department shall adopt regulations to allow any payment required under this division to be made with digital financial assets.
(b) On or before January 1, 2027, 2028, the department shall submit a report to the Legislature, pursuant to Section 9795 of the Government Code, containing all of the following:
(1) The number and value of cryptocurrency transactions processed.
(2) Technical and regulatory challenges encountered.
(3) Recommendations for payments under other laws and to other state government agencies to be made using digital financial assets.
(c) This section shall be operative only until January 1, 2031, and as of that date is repealed.