Cryptocurrencies finds favor among state and local political candidates in California. Cryptocurrency donations have been approved by the Fair Political Practices Commission and state and local political candidates in California can now accept cryptocurrencies as donations. The rider in this approval is that the candidates will have to convert the cryptocurrency immediately into fiat currency i.e. Dollars.
California is soon becoming the cryptocurrency capital in the US and the latest move will be seen as one more step towards making crypto assets more acceptable. It must be remembered that in May California Governor Gavin Newsom signed an executive order to foster innovation through crypto and Blockchain technology.
California Political Action Committees Permits Crypto and Bitcoin Donations
The latest development follows California’s Fair Political Practices Commission is allowing political parties to accept crypto like Bitcoin as donations for funding their political goals. The Los Angeles Times dated July 22 reported this news and said that the new rules will be effective after 60 days.
However the rider to this permission is that the cryptocurrency received as donation must be converted immediately into US Currency via a registered cryptocurrency processor that records the name, address, occupation, and employer of each contributor.
It is interesting to recall that California was one of the nine states which advocated a ban on cryptocurrency donations to political candidates. However with the latest approval it has become the 13th state to allow crypto and bitcoin donations to political campaigns.
States across the US allow candidates who are running for federal offices to receive crypto assets in the form of donations. The crypto sector is also backing several crypto-focused political action committees which are aiming to elect a crypto friendly President in the forthcoming Presidential Elections in 2024. The US is also strengthening crypto regulations and intends to bring forth the proposed bipartisan crypto bill in light of increasing adoption of cryptocurrency in the country