A new ruling has come into force from the California state’s political watchdog.
Candidates who are running for public offices in the state will not be able to receive any donations in cryptocurrencies.
No Political Donations in Cryptos
The FPPC (Fair Political Practices Commission) for the Golden State voted 3-1 on Thursday and prohibited political donations in cryptocurrencies.
The Commission referred to the challenges with tracking the origin of such crypto-based donations. It also expressed its concerns over political transparency.
This decision comes in the light of a hearing in August this year. The FPPC discussed several election issues. It also considered the issue of crypto funding in political donations.
The committee could not arrive at any conclusion at that time. It expressed the need for more time to fully understand the complex issue.
Some commissioners at the hearing had argued against a complete ban. On the other hand, others questioned the process for the verification of the origin of a cryptocurrency donation.
The Path Ahead
Since the authorities have now made the decision, an FPPC representative said that there will be further analysis and debate on the issue:
“There was extensive research by staff, input from stakeholders that was publicly displayed on our website and public debate among the Commission today and that is the decision rendered. As was publicly stated by many if not all of the Commissioners, there will be further debate and analysis in the coming months and years.”
At present, the US Federal Election Commission allows the candidates to accept cryptocurrencies such as bitcoin. The Commission regards them as an in-kind donation. The Commission made this ruling back in the year 2014.
Moreover, other states such as South Carolina have also taken the same route as California and prohibited Bitcoin donations.
Some others including Colorado allow crypto funding. However, they placed a limit on the donated funds.
Want the latest crypto news? Join our Telegram Channel