FPPC prohibits cryptocurrency donations in California citing lack of tracking methods


Bitcoin is not new to politics; in 2013 the US Federal Electoral Commission began to explore the idea of ​​treating Bitcoin donations as a contribution in kind. Later, they continued to determine that political campaigns could accept Bitcoin as donations in 2014.

In its report, the commission noted,

Bitcoin's initial receipt as a contribution, regardless of the subsequent provision should be reported as in unison contributions

Fast forward four years later to 2018 August and candidates for public office in California expected cryptocurrency donations for their political campaigns. However, even after the California Political Practices Commission met to discuss the issue of accepting cryptocurrency donations as part of donations, there are still uncertainties as committee chair Alice Germond noted that it would be "prone to think that Bitcoin is something that is not US money but is more like a currency, like the euro. "He also added that he would like to" feel more to develop "his thinking and define a defined definition for what qualifies as cryptocurrency.

FPPC prohibits cryptography donations

At the time reports indicate that candidates who run for a public office in the US state of California may not be able to obtain donations in kind in encryption, after all . The move comes after a decision was made by the California FPPC political control association.

FPPC (Fair Political Practices Commission) voted 3 to 1 yesterday in a move to ban political donations in kind in cryptocurrencies. The commission cited difficulties in tracing the cryptocurrency donation as a concern for political transparency in the gold state.

Verify and adjust

Although some commissioners were opposed to the idea of ​​a total ban on cryptography, some were concerned about the methods that can be used to verify and regulate crypt donations.

Since 2014, cryptic donations in political campaigns have been steadily increasing. For example, Texas Attorney General Greg Abbott began donating Bitcoin in April 2014.

The FPPC agreed in August to collect donations for $ 100 for the mid-term elections in 2018 while the commissioners gathered more information to arrive at a conclusive result.

However, with the new decision of the commission to prohibit encrypted donations for viewers of political campaigns have been on the sidelines trying to find out if the commission intends to allow candidates to accept Bitcoin donations

While talking about tokens The FPPC representative told Coin Desk,

Extensive research by the staff, contributions from stakeholders that have been publicly displayed on our website and public debates between the Commission today and that is the decision taken have been conducted. As has been publicly stated by many if not all Commissioners, there will be further discussion and analysis in the coming months and years

Other states such as Colorado have allowed encrypted funding with a maximum amount of donations. States like South Carolina, on the other hand, have followed the spirit of California and totally prohibited donations.

Image Credit: Depositing Photos

What do you think of the FPPC's move to ban encrypted donations to political campaigns in the state of California? Share your thoughts and opinions with us in the comments section.

[ad_2]Source link