California has decided that political candidates can’t receive donations to run their campaign in cryptocurrency.
The Fair Political Practices Commission (FPPC), a committee made up of five members, non-partisan, decided in favor of a ban on cryptocurrency donations for candidates running for public office in CA. The AP reports that the vote was 3 to 1 in favor for the ban due to “difficulty in tracking and raising questions about transparency.”
CA isn’t the only states that have dealt with this issue. North Carolina faced the same crypto ban earlier in 2018. The Federal Election Commission voted to allow both politician campaigns and action committees to accept cryptocurrency donations in 2014. A 2020 presidential candidate, Andrew Yang, has announced that he was accepting donations in BTC, ETH, and all ERC20 tokens. Brian Forde, former Obama aide and CA Democrat running for Congress was subject to political attack earlier this year for accepting BTC donations.
California’s FPPC released a staff report earlier this month which showed off a few options for crypto regulations with different outcomes based on other states adoptions:
- Prohibit all contributions
- Allow crypto-as-cash donations under $100 and converted to cash immediately after donating
- Crypto donations of any amount converted to cash after donating the amount
- Separate fiat and crypto accounts
Regardless, CA won’t be accepting crypto donations for any political campaign as of now.
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