California had banned crypto adoptions in the political sphere for some time, focusing more on contributions to electoral activities. However, with the slight increase in adoptions within the country, legislators may consider relaxing their laws.
The political agency in California, the FPPC, would be analyzing regulatory policies based on cryptos and could modify them next Thursday, May 19. The regulatory group supports that electoral crypto donations will bring risks.
Laws against crypto in California
New California laws against cryptos would only focus on electoral activities, but this would not apply to a federal area. Citizens in California and congressional candidates like Rhodes Aarika, who is considered a strong supporter of crypto, can receive donations in Bitcoin.
The state is a great promoter of the cryptographic industry, where its citizens profit from fast transactions and passive investments. On the other hand, Colorado is also following the trend due to the crypto-friendly policies that have been created in recent months.
According to FPPC, it is necessary to check crypto regulations in the political sphere, referring to the fact that the agency in California seeks to stay away from the latest trends. Previously, the FPPC investigated the NFT market and found that its technology is useful for electoral activities; therefore, congressional candidates should use it.
FPPC’s communications director Jay Wierenga said that the crypto market is growing, reflected in the adoptions from 2019. Now, she considers that FPPC should renew its laws if necessary.
Crypto ban in politics
For the third quarter of 2018, the FPPC in California was responsible for blocking crypto transactions in the political area. At that time, the national agency said that it was risky to get involved with cryptocurrencies, so they denied their use.
At the date of the regulation, Bitcoin was trading for $6,000, its global adoption was slight, and there were still doubts about its functionality in the market. However, with almost four years of what happened and with an increase of more than 1,000 percent in the crypto prices, it is not surprising that legislators consider their regulations.
Election contributions in cryptos are an issue that has been discussed for several months, being prioritized in California, South Carolina, and Colorado. But California is the only one advancing in these developments painting a good picture for the crypto industry. It is expected that next Thursday’s meeting will resolve all doubts about crypto adoption, and its operation will be approved.