Political campaigns

California Examines Ban on Cryptocurrency Donations for Political Campaigns

Since 2018, the state of California has banned all political donations of cryptocurrencies, citing fears of foreign policy interference and the possibility of using digital assets to circumvent campaign contribution limits. However, that could change next week as the state’s Fair Political Practices Commission decides on Thursday whether or not to change the regulations.

Groups monitoring campaign finance say virtual assets carry a risk of allowing anonymous and private campaign contributions.

According to Cointelegraph, the cryptocurrency ban only applies to local and state political campaigns, not those at the federal level. This means that political candidates like Democrat Aarika Rhodes, who is seeking election in California’s 32nd congressional district, can urge their followers to donate Bitcoin without penalty.

Other states have taken a different approach: Colorado only allows crypto donations up to the same level as regular currency. And in 2018, South Carolina declared cryptocurrency ineligible for campaign contributions.

California’s Fair Political Practices Commission, or FPPC, reviews regulations as it tries to “stay ahead” of trends, according to FPPC communications director Jay Wierenga in an interview with Cointelegraph.

At this point in March, the commission reviewed the use of non-fungible tokens or NFTs for campaign fundraising and said political campaigns are required to report the entire sale of NFTs as a contribution. .

“This has been on our radar since late last year,” Jay Wierenga told Cointelegraph. “Crypto [has] has obviously increased its use and visibility since 2019. The Commission therefore wishes to review it and determine whether any changes should be made or not.