According to reports, the California Fair Political Practises Commission (FPPC) has revised the campaign disclosure guidelines, adding additional requirements regarding disclosing of crypto contributions.
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California Commission Introduces Contribution Limitations
The revisions include campaign contribution limitations, a limited liability company disclosure obligations, behested payment reporting, cryptocurrency donations, excessive contributions, advertising disclosure requirements, and other minor technical improvements.
California Committee Reverses Ban on Crypto Donations
Notably, after a four-year prohibition on bitcoin contributions, the California Commission reversed the ban on the utilization of cryptocurrencies for political fundraising aid in July last year. At that point, the rule noted that campaigns that collect cryptocurrency donations must convert it to cash as soon as possible.
According to the manual shared by the California Commission, a political group could ask for a crypto donation as a non-financial donation if certain conditions are met. Contributions in cryptocurrency are tied to limitations and won’t always be received from foreign principals, lobbyists, or unknown parties. Committees are also prohibited from accepting cryptocurrency contributions through collaborative transfers. The payment processors chosen to operate as vendors on behalf of the committee can accept cryptocurrency contributions.
Conversion of Crypto to USD
However, the law calls for crypto donations to be delivered and accepted via payment processors that are licensed by the American Department of Treasury and the Network for Financial Crimes Enforcement in the United States. It is anticipated that crypto donations would promptly be converted to US dollars immediately after the acceptance using the present rate of exchange, and that they will be deposited into the committee’s campaign bank account within two working days of being received.Â
Sharing Information of Donors
Payment processors must also document and share the complete name, address, occupation, and employer of relevant donors to the groups within one day of the donation being completed.
California has also set the road for the mainstreaming of cryptocurrency in various other situations. As reported by TheCoinRise, the state Senate debated legislation in February last year that would enable cryptocurrency transactions for services provided by the government.
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