The Fair Political Practices Commission (FPPC) of California overturns a four-year ban to favorably approve new rules for political campaign donations via cryptocurrencies.
The state and local offices in California shall now legally be able to receive crypto donations, thanks to a motion of the FPPC on its “Regulation 18421.2 Cryptocurrency Contributions.”
In a live-streamed commission meeting, the FPPC general counsel David Bainbridge said, “In drafting this legislation, we had to address the inherent concerns with cryptocurrency and the opportunity it presents for illegal contributions.”
The new rules are expected to come into force in 60 days. After which the residents of the state of California will soon be able to donate to the political campaigners of their preference via digital currencies.
The only condition the FPPC puts forward is that the donation recipients must immediately convert their crypto into U.S. dollars (fiat money).
The cryptocurrency processor platform that the candidates use for receiving donations must be authorized, duly registered, and U.S.-based. The crypto platform in question would record the name, address, occupation, and employer of contributors. Donations anonymous in nature will strictly be prohibited.
Thorough KYC norms will also have to be followed for crypto donations along with adherence to subpoena record requests.
Earlier we reported a potential lift of ban on crypto donations to political campaigns in California.
California, along with nine other U.S. states earlier went on to officially prohibit cryptocurrency donations for political campaigns. The twelve U.S. states that already permit cryptocurrency donations for political campaigns also include Washington D.C., per a FPPC staff report.
Although, contesting political candidates aiming for the federal office can already receive cryptocurrency donations.