California campaigns can soon accept cryptocurrency donations under new regulations
California will join 12 other states and D.C. that allow crypto donations of some sort.
(The Center Square) -
California campaigns could soon accept cryptocurrency contributions like Bitcoin under new regulations adopted by the Fair Political Practices Commission.
The FPPC voted Thursday to lift a ban on cryptocurrency donations, adding California to the list of 12 states and Washington, D.C. who allow crypto donations in some form. Prior to the commission’s decision, California was one of nine states that banned crypto contributions.
A contribution using cryptocurrency must go through a third-party, U.S.-based payment processor and must be converted to U.S. dollars immediately, according to the FPPC’s regulations. Campaigns would be required to use a payment processor that collects the name, address, occupation and employer of each contributor “to ensure the true identity of the contributor is disclosed,” thus ensuring that a crypto contributor receives the same level of privacy as a person who contributes with traditional currency.
The FPPC’s new regulation will take effect in 60 days, according to the Sacramento Bee.
The decision comes a few months after Gov. Gavin Newsom issued an executive order to create a framework to regulate the cryptocurrency industry. Newsom touted the order as the state “getting ahead of the curve” by laying out a foundation for companies that operate in blockchain – including crypto assets – to thrive.