California Regulator Considers Lifting Ban on Cryptocurrency Donations to Political Campaigns

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2022-05-20 15:02:27

After four years of upholding the ban, the California State Regulator, the Fair Political Practices Commission (FPPC), is considering allowing the use of cryptocurrencies to donate to political campaigns.

California Regulator Considers Lifting Ban on Cryptocurrency Donations to Political Campaigns

FPPC considers lifting crypto ban

At its most recent Committee meeting, the FPPC revealed that it was arranging to hold a discussion on May 19. The purpose of this discussion is to consider whether to allow the funding of political activities with digital assets in California.

The proposed regulations and amendments will be discussed and guided by the Committee and will be presented for adoption at the next meeting. The committee will review and discuss potential funding legislation and other legislation. The Commission will provide guidance on future legislation the agency will seek.

The FPPC has started banning sending and receiving cryptocurrency donations for political campaigns since September 2018. Explaining the ban, the regulators said that they had difficulty tracking the origin of donations, which affected the transparency of the election process.

California Governor Backs Cryptocurrency and Blockchain

This new move by the FPPC comes shortly after the Governor of California, Gavin Newsom, signed an executive order on cryptocurrency, accepting Blockchain technology for the state on May 5.

The Governor thinks that the Law needs to provide a roadmap to establish a legal framework to protect investors in the crypto sector. In addition, the government should also consider researching ways to combine crypto assets and underlying blockchain technology, as well as apply to local businesses.

The Governor’s senior adviser, Dee Dee Myers, also fully supports the decision. The advisor shared that California is a top destination for companies operating in the crypto space. The majority of US lawmakers will aim to support passing regulations that attract the crypto community here.

Myers says:

Of the 800 blockchain businesses in North America, about a quarter of them are in California, significantly more than any other state. We’ve heard from a lot of people that they want to grow their industry in the state and we want to help them do it responsibly.

Major states in the United States are gradually adopting cryptocurrencies as they have seen the growth of this market over the past year. Not only California, other states like Florida or New York are also gradually entering this market.

On March 23, Florida governor, Ron DeSantis, confirmed the state will accept tax payments in Bitcoin.

In a January 7 interview with CNBC’s Squawk Box, New York Mayor Eric Adams said his goal is to make the city a Bitcoin and crypto hub.

Previously, in November 2021, the mayor announced his readiness to receive his first three months of salary in Bitcoin (BTC) after taking office, becoming the first US politician to make such a move.

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