Donation of cryptocurrency in political campaigns is banned in California by the Fair Political Practices Commission (FPPC) of the state. This decision was reached on the 20th of September, after a long period of hearing and discussion on the subject in the state.
Ban of Cryptocurrency Donation For Political Campaigns
Cryptocurrency usage is no longer new, as it has become a part of the human society for storage of value, tipping, and payment of transactions. Though the sphere is still nascent, it has shown considerable growth and acceptance globally.
While cryptocurrency is still in the shadows of institutional acceptance, the United States Federal Electoral Commission has gone further to permit cryptocurrency donation for a political campaign. This has brought cryptocurrency into the limelight of institutions and governance despite the impediments facing cryptocurrency because of its inherent weakness.
However, despite this advancement, the autonomy of the state government in the United States can reverse the law to suit their condition.
Notably, the Fair Political Practices Commission (FPPC) of the state of California has decided on the status of cryptocurrency acceptance in a political campaign in the state.
This decision was reached on Thursday through a vote of the commission which has an outcome of 3-1 against the cryptocurrency donation for a political campaign in the state. Deliberations have been made on the subject previously in the state as part of several election issues in the state.
The major conflict against the use of cryptocurrency in political campaign donation by the commissioners was how to verify the origin of a virtual currency donation. This led to the suggestion of outright ban of cryptocurrency for political campaign donations.
After the decision of ban was made, a representative of FPPC further revealed that there was extensive research by staffs and also input from stakeholders. This was publicly displayed on the commission’s website and the public debate on the issue which the commission has made its decision. However, the representative stated that further discussion on the matter is still in the offing, in the coming months and years.
Political Campaign Donation With Cryptocurrency in the Other States
Similar to the decision of California, North Carolina has also reached the same conclusion by banning cryptocurrency for a political campaign donation in the state.
States where it is permitted such as Colorado, a limit has been placed on the amount that can be donated in cryptocurrency.