The state of California has recently made some important changes for the political candidates concerning cryptocurrencies. During the latest vote, the ban on politicians of the golden state has been revoked for receiving donations for their campaigns in the form of cryptocurrencies like Bitcoin. The ban revocation is applicable for state and municipal level political workers.
Voting for the decision was carried out at the Fair Political Practices Commission or FPPC. Under the purview of the new legislative guidance, the citizens of the state will be able to legally allow Bitcoin or any other cryptocurrency donation to their selected political candidate. However, the change of law is not free from the terms and conditions attached.
Rules and Regulations for Cryptocurrency Donations
As per the new decree of FPPC concerning political cryptocurrency donations, the recipients of the donations are required to convert their cryptocurrency reserves quickly into USD. Furthermore, the politicians may only use The Department of Treasury USD reserves for liquidating their digital currency donations. At the same time, the political campaigns at the state and local levels must implement KYC protocols to ascertain the identity of the donors.
In addition to the real identification of the donors, they must also provide their profession, background, residential address, and employment proof. If all the KYC conditions are not met, the cryptocurrency donation will be marked illegal and invalid. General Counsel at FPPC, David Bainbridge, claimed recently that the committee attempted to address the main issues concerning the cryptocurrency donations ban to reach a workable consensus.
The General Counsel of FPPC, Bainbridge, claimed that with the latest regulatory changes the politicians of the state would not be able to enjoy the perks of anonymous cryptocurrency donations. All the cryptocurrency reserves allotted to the politicians will be accounted for without any threat of corruption and unwarranted interest getting incentivized in the political stratosphere of the region.
On the other hand, the news about the state of California warming up toward cryptocurrencies has been taken as a positive sign among the members of the cryptocurrency community. However, at the same time, while the state is ready to accept cryptocurrencies, it is still determined not to hold them for the long term, which can be contrary to the status of digital assets as a viable investment option. The crypto donation limit has also been capped at $100.