California Is On The Verge Of Lifting Cryptocurrency Ban For Political Donations

May 18, 2022 5:02 pm

The FPPC(Fair Political Practices Commission) is now considering un-banning cryptocurrency donations for political candidates.

During the latest FPPC meeting, the FPPC decided it will hold a meeting on May 19th which will discuss whether digital assets should be used for political donations.

In 2018 California state regulators banned cryptocurrencies from being used in elections and argued that it’s hard to originate the origins of digital asset contributions.

Federal law has banned all contributions that stem from foreign nationals but with cryptocurrency being hard to track donations from foreign influences could become common.

Crypto Potato had these detail to share:

California’s state regulator – Fair Political Practices Commission (FPPC) – will consider allowing the use of cryptocurrencies for political campaign donations four years after banning them. During its most recent Commission Meeting, the FPPC disclosed it had arranged a “pre-notice discussion” where it will contemplate whether to enable digital asset political donations in the state. The conversation will be held later this week (May 19):

“The proposed regulations and amendments are presented for discussion and direction by the Commission and will be presented for adoption at a subsequent meeting. The Commission will review and discuss potential sponsored and other legislation, The Commission will provide direction on future legislation to be sought by the agency.”

Local watchdogs prohibited sending and receiving cryptocurrency donations for political campaigns in September 2018. Back then, the regulators argued it is hard to track the origin of such contributions, compromising the transparency of one’s candidacy.

Banning crypto donations for political parties is a policy imposed by others, too. Last month, the authorities of Ireland did the same, citing fears of Russian intervention. Several reports suggested that oligarchs part of Putin’s inner cycle have begun utilizing bitcoin and altcoins to avoid the monetary sanctions enforced by the West.

 

Coinscreed got the scoop too:

A California state regulator may be considering reversing a 2018 prohibition on bitcoin donations to political campaigns. The commission stated that it will explore amending its regulations to require that “no contribution be made or received in cryptocurrency.”

Due to concerns that the funds “could be used to circumvent contribution limitations and prohibitions, or by foreign entities to contribute to campaigns,” the FPPC voted in September 2018 to prohibit both sending and receiving crypto contributions for political campaigns in the state of California.

Jay Wierenga, the FPPC’s communications director, told Cointelegraph that the commission “look[s] at trends and [tries] to stay ahead of them,” citing a March opinion in which the commission’s legal division stated that a campaign selling non-fungible tokens to raise funds must count “the entire amount received” as a “reportable contribution.”

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