Candidates for state and local office in California will once again be allowed to accept donations in cryptocurrency after the State Fair Political Practices Commission (FPPC) lifted the ban on Thursday. The ban was introduced in 2018.
California was one of nine states that banned political donations in crypto due to alleged transparency and Know Your Customer (KYC) issues. The issue of crypto contributions was revived in March when the commission published opinion on the sale of non-fungible tokens (NFT) to raise funds for the campaign.
In May, a report was prepared by the FPPC that explored three options for its cryptopolitics. They had to keep the ban or treat cryptocurrency like cash with a $100 deposit limit, as is done in several states.
The third option was to treat cryptocurrencies as an in-kind contribution, i.e. as a good or service rather than money, with the requirement that the deposit be received through a processor using KYC protocols and that the deposit be converted to fiat within two business days . receipt. The cost of the deposit will be equal to the exchange rate of the cryptocurrency on the day of the transfer.
FPPC approved third option in his decision on Thursday. California now joins 12 other states in explicitly allowing cryptocurrency political contributions. The decision takes effect after 60 days.
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California has been a leader in the adoption of cryptocurrencies in other areas. In February, a bill was introduced in the State Senate to allow payment for state government services with cryptocurrency. This bill did not pass a committee vote, but was granted rehearings that have not yet taken place. In May, Governor Gavin Newsom issued an executive order to align the state’s regulations with President Joe Biden’s Digital Assets Executive Order.
Credit : cointelegraph.com