The Golden State of California is currently making strides as one of the few US states to push for cryptocurrency as part of its official legal tender within its government services. The current move is relevant as part of a rising political matter with the Biden Administration currently setting sights on how the industry will be included to the fore as part of its financial regulations.
More information is yet to be uncovered according to the state legislators as the US Congress convenes this year to sit down and talk hard on how to better address the deregulated sector.
California’s bitcoin stance
The third-largest state in the US has presented a more receptive standpoint when it comes to the decentralized currency. The Senate bill 1275 submitted by California State Senator, Sydney Kamlager, is proposing the acceptance of cryptocurrency for transactions.
However, the bill states that the regulation will only apply to payments for government-focused services. It is not clear whether private companies, such as retailers, will follow suit.
The legislative counsel’s digest states, “Existing law establishes state agencies for various purposes, including to provide certain services to the public for which payment is required. The bill would authorize a state agency to accept cryptocurrency as a method of payment for the provision of government services.”
California is not just the state who has expressed its interest in dipping its toes with cryptocurrency regulations. Colorado State Governor, Jared Polis, announced that the Centennial State would include cryptocurrencies as part of its legal tender for tax payments starting this summer of 2022.
Meanwhile, Republican State Senator Wendy Rogers of Arizona presented Bill 1341, which also considers bitcoin as part of its official payment options in the Grand Canyon State. The recent announcements made by the various states were first made known in 2021 and 2022 respectively.
US crypto legislation in the pipeline
The Biden administration has later asserted its position in terms of regulating the cryptocurrency sector. As a deregulated sector, there has been no clear ruling on cryptocurrencies, including how it is legally defined.
The US government has decided to enact steps to cover many areas of the proposed new crypto regulation.
A few legislators have already shown support in this move with US Senator Cynthia Lummis and Senator Pat Toomey on the front, all of whom are hoping to provide guidance on the classification of crypto assets, in addition to provisions on crypto taxation and consumer protection.
The latest move of the Golden State serves as a catalyst for further changing the dynamic landscape of crypto. As bitcoin adoption has become eminent in recent months, we’ll certainly see a growing push among the other states to transition into a world of NFTs and DeFis.
Surely, this move will come with restrictions that will hinder further movement from the sector. However, this may also bring great news as bitcoins may finally be recognized as a viable currency option for people in this space. Only time will tell how things will pan out for the sector.