A judge at Brazil’s Supreme Federal Court is considering banning the use of cryptocurrencies in election campaigns, a sign that reforms are on the horizon in Brazil and abroad, legal experts say.
Nuno Marquez, vice president of the court-supervised electoral commission, plans to finalize a comprehensive review of election rules, including a long-standing ban on cryptocurrencies, ahead of October’s general elections, Brazilian media LiveCoins reported.
“What is changing now in Brazil and other countries is that as digital assets become more mainstream, there is a growing recognition that blanket bans are difficult to maintain,” Jennifer Huaragu, head of legal affairs at staking provider Twin Stake, told DL News.
As cryptocurrencies continue to grow in popularity in Brazil, more politicians are backing their adoption ahead of this year’s elections, with digital assets expected to be a deciding factor for some voters.
Future presidential candidate Renan Santos recently promised to create a national Bitcoin reserve if elected. Crypto community leaders have said they would support his bid if he enacts crypto-friendly policies.
Cryptocurrency exchange Mercado Bitcoin said in a report last month that crypto trading volume in Brazil increased by 43% last year, with the average Brazilian trader spending more than $1,000 on cryptocurrencies.
room for change
Although Marquez has not directly spoken out about crypto-funding in elections, he has suggested there may be room for reform.
As it stands, Article 62 of the Brazilian Electoral Code explicitly prohibits the use of cryptocurrencies as donation tools.
In comments on “campaign finance,” Marquez said candidates and parties are welcome to challenge the current rules if they “demonstrate the legitimacy of the changes,” Brazilian media outlet Ultimo Segundo reported.
The court will hear proposals from the public, businesses, and political parties until the end of this month. A public hearing will then be held in early February, with the rules expected to be finalized in March.
Warag said the reasons why Brazilian authorities banned cryptocurrencies in 2019 were primarily technical.
“In Brazil,[electoral rules]emphasize identifying donors, limiting donations, controlling sources of funds, and transparently evaluating donations,” she said. “Cryptocurrencies challenged that framework not because they were inherently opaque, but because they did not fit neatly into reporting and monitoring systems designed around bank transfers and fiat currencies.”
All of this helps explain why Brazil “initially chose a complete ban rather than a gradual easing,” Warag explained.
Changing regulations around the world
Brazil may soon follow in the footsteps of the United States, where cryptocurrencies are starting to play an increasingly larger role in politics.
The Federal Election Commission approved Bitcoin donations in 2014. Last year, Bloomberg reported that crypto companies raised $263 million from industry players to support pro-crypto candidates in the 2026 midterm elections.
Warrag said a similar “reassessment” of the use of crypto donations is underway in Europe and parts of Asia, where regulators are being “forced to more directly address the inherent volatility of cryptocurrencies, rather than trying to fit them into a framework designed specifically for cash and bank transfers.”
He said election commissions are likely to “adapt rather than abandon” existing safeguards to ensure traceability and transparency of campaign finance even in the digital age.
Brazil’s Supreme Court last reviewed election rules in February 2024, when it decided to uphold the ban.
At the time, it said the decision was made “to ensure transparency and proper tracking of donations to political campaigns.”
Tim Alper is a news correspondent for DL News. Any tips? Email tdalper@dlnews.com.
