Texas politicians and other government officials might soon be permitted to accept Bitcoin (BTC) and crypto contributions as provided in the new rule being proposed by the Texas Ethics Commission.
According to reports, the proposal which has now been filed with the Texas Secretary of State, is seeking to address the present requirements surrounding political contributions made with cryptocurrencies.
The New Rule Will Allow Texas Politicians to Spend Cryptocurrencies Directly
From the filing, the new rule will allow political candidates, committees, and officeholders to accept ‘cryptocurrency’. However, seeing as no particular type of cryptocurrency was mentioned, it’s safe to say that all cryptocurrencies will be allowed.
The implication of the new rule if approved, is that crypto donations and contributions only need to be reported as investments, and not as currency. According to the Texas Ethics Commission, this move is in line with the way the likes of Internal Revenue Service (IRS), Securities and Exchange Commission (SEC), and Federal Election Commission (FEC), all handle crypto contributions.
Also, the Commission insists that filers would not need to first liquidate their cryptocurrency holdings within any particular timeframe, before being able to spend them.
Additionally, and in a bid to counter the high volatility of cryptocurrencies, the commission is also directing filers to report the value of any accepted crypto as the fair market value at the time of receipt.
However, the legality of every crypto contribution will be subject to confirming that the contributor is not a foreign national. According to the filing, the new rule is proposed under Texas Government Code §571.062, which permits the Commission to adopt rules to administer Title 15 of the Election Code.
Recall that the state of Texas recently approved two bills that promote the adoption of cryptocurrency blockchain.
Good news for crypto contributors and public office holders?