California releases updated cryptocurrency campaign donation policies

Updated disclosure policies in California state that campaigns have to immediately convert cryptocurrency contributions into USD

article-image

Casablanca Stock/Shutterstock modified by Blockworks

share

The California Fair Political Practices Commission has revised its policies to provide details on the acceptance of cryptocurrency donations by campaigns.

The Commission’s updated disclosure manuals clarify that candidates and committees in California can only accept cryptocurrencies through US-based payments processors that follow know-your-customer (KYC) policies and regulations set by the Treasury and Financial Crimes Enforcement Network. 

California’s policies state that all crypto contributions must be immediately converted into US dollars and that foreign entities, lobbyists and anonymous donors are not allowed to donate in cryptocurrencies. 

Committees are required to accept cryptocurrencies solely through platforms that gather and report the name, address, employer and occupation of donors within 24 hours. Under the guidelines, California classifies crypto contributions as “non monetary” donations. 

California first gave the greenlight for cryptocurrency campaign contributions in July 2022 after the state had elected to ban the practice in 2018. The Commission is scheduled to discuss the updated manual at its next meeting on Aug. 17, according to the public agenda.

The updated crypto contribution policies in California come shortly after the Minnesota Campaign Finance & Public Disclosure Board voted last month to officially allow candidates to accept cryptocurrency contributions. Under Minnesota’s policy, candidates and committees must convert the crypto into US dollars within five days. 

States including Arizona, Colorado, Iowa, Ohio, Tennessee and Washington also have policies allowing for cryptocurrencies campaign donations. States that have explicitly banned the practice, generally over concerns that crypto enables campaigns to conceal funding, include North Carolina and Oregon. 

On a national level, the Federal Election Committee allows committees and candidates to accept bitcoin contributions. Committees are allowed to hold the crypto in a wallet, but must return any contributions that come from a prohibited source, exceed the contribution limit or are otherwise illegal, the FEC said


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million