California Re-Allows Crypto Contributions to State and Local Political Campaigns

Candidates for state and local office in California will be able to accept cryptocurrency donations again, after the The state’s Fair Political Practices Commission (FPPC) will lift a ban on July 21. The ban was imposed in 2018.

California was one of nine states that had banned political contributions of cryptocurrencies due to perceived transparency and know-your-customer (KYC) issues. The issue of crypto contributions was revived in March, when the commission issued an opinion on the sale of non-fungible tokens (NFTs) for campaign fundraising.

In May, the FPPC prepared a report in which it is examined three options for your cryptocurrency policy. These were to maintain the ban, or treat crypto like cash, with a $100 contribution limit, as is done in several states.

The third option was to treat cryptocurrencies as an in-kind contribution, that is, as a good or service rather than money, with the requirements that the contribution come through a processor that uses KYC protocols and that the contribution be converted into fiat money within two business days of receipt. The value of the contribution would be the dollar to crypto exchange rate on the day of the transfer.

The FPPC approved the third option in its decision on Thursday. California now joins 12 other states that explicitly allow political contributions in cryptocurrency. The decision takes effect in 60 days.

California has been a leader in cryptocurrency adoption in other arenas. In February, it introduced a bill in the senate of the state to make it possible to pay for state government services with cryptocurrencies. That bill was not voted on by the committee, but it was granted a new hearing that has not yet taken place. Governor Gavin Newsom issued an executive order in May for harmonize state regulations with President Joe Biden’s executive order on digital assets.

See Also:  a major fire in California mitigated by rains

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.