California Watchdog Bans Bitcoin Donations in Political Campaigns

The California state government’s political watchdog has ruled that candidates will not be allowed to receive donations for political campaigns with cryptocurrencies like bitcoin.

The Fair Political Practices Commission, a five-member non-partisan commission that functions as the state’s campaign watchdog, has voted to ban cryptocurrency donations for candidates running for public offices in the state. The vote on Thursday was 3-1 in favor of a ban, the Associated Press reports, with authorities citing concerns in tracking the origin of crypto donations and their transparency in the political sphere.

The vote follows a staff report submitted to the Commission earlier this month wherein the latter sought to ascertain the approaches taken by other states toward campaign contributions in cryptocurrency.

Beyond the gathered research, the staff also outlined four draft regulations with varying outcomes.

Option one expressly forbade all contributions in cryptocurrency. Two – permit crypto contributions as cash donations up to $100 wherein the cryptocurrency had to be converted to cash upon receipt before its deposit into the campaign bank account. Option three allowed for ‘in-kind’ contributions with crypto-to-cash conversion while the last option allowed for in-kind cryptocurrency contributions without any fiat conversion wherein campaigns see the funds transferred to their own cryptocurrency wallet.

The option to prohibit all crypto contributions, the staff report explained, is “consistent” with campaign activity FAQs from 2014 which determined that the ““staff has done extensive research on the topic and recommends that committees not accept bitcoins or other digital currency as campaign contributions at this time.…”.

This, despite a 2014 ruling wherein the Federal Elections Commission continues to allow political campaigns and political action committees (PACs) to accept cryptocurrencies as in-kind donations.

A guideline from the FEC reads:

A committee can receive bitcoins as contributions…Bitcoins may be received into and held in a bitcoin wallet until the committee liquidates them.

Earlier in May, Brian Forde, a former Obama aide and Californian democrat running for Congress saw a political attack from a rival for accepting bitcoin contributions for his political campaign.

In August, North Carolina moved to forbid campaign donations in cryptocurrencies while the likes of Colorado have permitted crypto donations with a limit.

Featured image from Shutterstock.

Follow us on Telegram or subscribe to our newsletter here.

Join CCN’s crypto community for $9.99 per month, click here.

Want exclusive analysis and crypto insights from Hacked.com? Click here.

Open Positions at CCN: Full Time and Part Time Journalists Wanted.

Advertisement


Read More

Did you like this?
Tip Cryptos UK with Cryptocurrency

Donate Bitcoin to Cryptos UK

Scan to Donate Bitcoin to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate Bitcoin Cash to Cryptos UK

Scan to Donate Bitcoin Cash to Cryptos UK
Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate Ethereum to Cryptos UK

Scan to Donate Ethereum to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some Ether:

Donate Litecoin to Cryptos UK

Scan to Donate Litecoin to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate Monero to Cryptos UK

Scan to Donate Monero to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some Monero:

Donate ZCash to Cryptos UK

Scan to Donate ZCash to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some ZCash:

Leave a Reply

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