Candidates who run for public offices in the US state of California may not receive donations in cryptocurrencies, according to a new ruling by the state's political control.
The Associated Press reported on Thursday that the Fair Political Practices Commission (FPPC) for the gold state voted on Thursday 3-1 to ban political donations in cryptocurrencies, citing the difficulty of tracing the government. origin of these donations and concerns about political transparency.
The decision follows a hearing in August in which the FPPC discussed various electoral issues, including whether the criptos should be allowed in political donations. The committee did not reach a conclusion at that time, requiring a longer period to fully understand the problem.
While some commissioners at the hearing were discussing an absolute ban, others raised the question of how to verify the origin of a virtual currency donation.
With the decision taken today, a representative of the FPPC told CoinDesk that there will still be further debates and analysis on the issue in the coming period, stating:
"There was extensive research from the staff, the contribution of stakeholders that has been publicly displayed on our website and public debate today between the Commission and this is the decision taken, as has been publicly stated by many if not all Commissioners, there will be further discussion and analysis in the coming months and years. " Currently, the US Federal Electoral Commission allows candidates to accept cryptocurrencies like bitcoin as a donation in kind, a decision that was made in 2014.
At the state level, some, as South Carolina, have taken a similar position as California and bitcoin donations outright banned. Others, like Colorado, allow for encrypted funding, but have put a limit on the amount that can be donated.
California image via Shutterstock