The California state government’s political authority has decided that applicants aren’t permitted to receive for political campaigns with cryptocurrency like bitcoin.
The Fair Political Practices Commission, a five-member non-partisan commission that works as the state’s campaign regulators, has voted to boycott cryptographic money donations for applicants running for public offices in the state. The vote on Thursday was 3-1 in favour of the boycott, the Associated Press reports, with authorities refers to worries in tracking the origin of crypto donations and their transparency in the political sphere.
The vote goes along with the staff reports that were delivered to Commission this month.
On further researching, the staff also drafted four different regulations with varying outcomes.
Option one explicitly precluded all contributions in the digital currency. Two – permit crypto contributions as cash donations up to $100 wherein the cryptocurrency had to be converted in cash upon receipt before its store into the campaign bank account. Option three took into consideration ‘in-kind’ contributions with crypto-to-cash change while the last alternative considered for in-kind cryptocurrency commitments with no fiat conversion wherein campaigns see the funds exchanged to their cryptocurrency wallet.
In spite of a 2014 decision wherein the Federal Elections Commission keeps on permitting political campaigns and Political Action Committees (PACs) to acknowledge cryptocurrencies as in-kind donations.
A guideline from FEC states:
“A committee can receive bitcoins as contributions…Bitcoins may be received into and held in a bitcoin wallet until the committee liquidates them.”
Prior in May, Brian Forde, a previous Obama assistant and Californian democrat running for Congress saw a political attack from an opponent for tolerating bitcoin commitments for his political campaign.