California Legalizes Bitcoin and Alternative Currencies
California passes AB-129, repealing outdated currency restrictions and effectively legalizing Bitcoin use in the state.
On June 28, 2014, California Governor Jerry Brown signed AB-129 into law, repealing a statute that prohibited the use of anything other than U.S. dollars as legal tender for commerce. While Bitcoin and other digital currencies had already been in circulation, their legal status in California was ambiguous, and AB-129 provided clarity by effectively legitimizing their use.
The bill did not make Bitcoin legal tender in the sense of requiring merchants to accept it, but it removed the legal gray area that could have been used to challenge businesses transacting in cryptocurrency. California’s decision was significant not only because of its large economy but also because of its role as a hub for technology innovation.
By creating a clearer legal environment, the law encouraged startups, investors, and consumers to experiment with Bitcoin without fear of running afoul of outdated regulations.The move was celebrated by the Bitcoin community as a step toward broader recognition and adoption, especially in the United States, where regulatory uncertainty remained one of the biggest obstacles to growth.