The State of California has introduced new disclosure requirements for cryptocurrency contributions made to elected politicians and people who are campaigning for public office.
The California Fair Political Practices Commission (FPPC) has updated its campaign disclosure manuals to include new rules related to cryptocurrency contributions and declarations.
According to the updated guidelines, a politician or person running for office in the state may solicit a cryptocurrency contribution from domestic U.S. sources.
However, cryptocurrency contributions may not be accepted from foreign actors, including overseas lobbyists and anonymous sources.
Political figures and their fundraising committees are also barred from receiving cryptocurrency contributions directly in peer-to-peer transactions.
The California commission requires cryptocurrency donations to be made and received through U.S.-based payment processors that are registered with the U.S. Treasury Department.
The payment processors are also required to collect the name, address, and employment information of crypto contributors and share this with the state commission within 24 hours of a contribution being made.
Politicians and people running for elected office in California are also expected to immediately convert cryptocurrency contributions into U.S. dollars at current exchange rates.
Converted cryptocurrency contributions are to be deposited into campaign bank accounts, in U.S. dollars, within two business days of receipt.
The commission is reportedly still debating what limits, if any, should be placed on political donations made in cryptocurrencies.
Cryptocurrency payments to elected officials is becoming a growing issue in the U.S. at both the state and federal levels as the use of digital coins and tokens increases in popularity.
