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Donations in cryptocurrency in Political Campaigns are banned in California

Every candidate who wants to take a position in a public office in California, US is forbidden to get donations in BTC. A recent report of the Associated Press says that the Fair Political Practices Commission supported the prohibition of the political donations made in cryptocurrency. The reasons for that are an inability to track where […]

By - September 23, 2018
Donations in cryptocurrency in Political Campaigns are banned in California

Every candidate who wants to take a position in a public office in California, US is forbidden to get donations in BTC. A recent report of the Associated Press says that the Fair Political Practices Commission supported the prohibition of the political donations made in cryptocurrency. The reasons for that are an inability to track where these donations have come from and doubts if this political party is transparent.

The following prohibition was supported only after a hearing that took place in August. During the meeting, there was a discussion of issues that happened in the previous elections and if crypto coins can be a currency of political donations. However, that hearing has not resulted in any accurate conclusions and the issue was sent for a further understanding.

At the time when some members of the commission were against the ban, the rest of the group were interested how to get a verification of the donation origin.

Despite the fact that a decision regarding this problem was already made, the FPPC does not refuse from the possibility of further discussions and analysis of the question. It has revealed that despite an extensive research made, input from stakeholders and public discussions, the next months and even years will be dedicated to the further analysis of the topic too.

At the moment, candidates are allowed to take crypto coins only as in-kind donations approved in 2014.

If to analyze the situation in other states, there are ones that prohibit BTC donations including South Carolina and ones that permit such way of funding political parties (for example, Colorado). However, the last ones have restricted the amount of such donation as well.

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