News 
Coin Information 
About us 
Politicians running for state and local offices will soon be able to accept campaign donations in crypto such as Bitcoin (BTC) or Ethereum (ETH). On Thursday, the Fair Political Practices Commission voted to approve new rules allowing candidates to accept campaign donations in digital currencies, the Los Angeles Times reported.
In 2018, California imposed a ban on crypto donations for campaigns and became one of the nine states that banned political contributions in crypto due to concerns about its transparency and Know Your Customer (KYC) issues, according to Cointelegraph. The Fair Political Practices Commission’s (FPPC) approval of the new rules on Thursday effectively lifted the previous ban.
In March, the question about crypto contributions was revived when the FPPC issued an opinion on non-fungible tokens (NFTs) in campaign contributions. The commission released a report in May that examined three options for treating crypto in campaign donations.
One option was to uphold the 2018 ban and continue to prohibit crypto donations. Another option was to treat crypto like cash and introduce a $100 cap on donations, which has been done in some states.
The third option proposed was to treat crypto like an in-kind contribution rather than money. This was the option the FPPC approved on Thursday, which will take effect in 60 days. With the new rules, California is now one of the 12 states that explicitly allow crypto campaign contributions.
Under the new rules, candidates can accept Bitcoin (BTC), Ether (ETH) and other digital currencies provided that these digital assets will be converted into fiat currency within two business days of receipt. To ensure that KYC protocols are observed, candidates must use a registered crypto processor to process the donation where the names, addresses, occupations, and other details of contributors will be collected.
Comment 0