The Fair Political Practices Commission of California on Friday overturned a ban on the use of cryptocurrency for political campaign contributions.
A four-year prohibition on bitcoin contributions has been removed by the FPPC. According to an FPPC staff report, California was one of the nine states that expressly forbade crypto activity in 2018. California has now joined 12 other states in specifically allowing cryptocurrency donations as a result of the recent judgment.
However, the guideline adds that Campaigns that receive crypto donations must turn digital currency into cash as soon as they get it. The Associated Press said that in order to access the standard donor information, campaigns must use a “registered cryptocurrency processor.”
According to a staff report, specific actions are needed to stop money laundering and the refusal of contribution caps for political parties.
California’s relation with the cryptocurrency world
The study states that the newly enforced rules would be put in place within 60 days.
California has paved the way for Cryptocurrency acceptance in other contexts. The state Senate in February considered legislation that would permit crypto payments for government services, as TheCoinRise reported.
This proposal was rejected in a procedural vote, but a review was permitted, which has not yet occurred. Governor Gavin Newsom signed an executive order in May to unify state laws with US President Joe Biden’s executive order on digital assets.
The risks associated with utilizing the potential benefits of digital currency assets and their underpinning capabilities were highlighted in an EO that Biden signed on March 9.
It is important to note that Sam Bankman-Fried, the CEO of the cryptocurrency exchange FTX, was one of Biden’s top financial backers for the 2020 election.
Interestingly, in January this year, the South Korean presidential candidate Lee Jae-Myung of the Democratic Party reportedly planned to raise funding for his election campaign using the Non-fungible token (NFT) sale.
