Campaign watchdog from California, Fair Political Practices Commission (FPPC) outlawed the receipt of Bitcoin (BTC) as donations during elections recently. Henceforth political parties and candidates running for California’s office will not be able to accept virtual currencies from donors to fulfill their political aspirations.
Commission prohibits use of cryptocurrency following transparency concerns
As per report, FPPC members voted 3-1 for prohibiting donations for political campaigns in cryptocurrency. The commission stated that it is difficult to track the origin from where the contributions came which increases the concern related to political transparency. That is why the commission decided to prohibit digital currency usage in political campaigns. Prior to this decision, the FFPC discussed in August about allowing use of BTC and other cryptocurrencies as political contributions. Even after a lengthy discussion commission could not take a decision in favor of virtual currencies.
Decision lies in the hands of states
Generally, the Federal Elections Commission in the U.S. is in favor of the use of cryptocurrency donations to the candidates running for federal elections. But many states do not favor such type of contributions. Some time ago South Carolina announced an outright ban on BTC donations. The state of Colorado and Montana allow the use of Bitcoin during political campaigns albeit with some restrictions.
The state legislation introduced by Colorado places a cap on the amount that politicians can accept as a donation in the form of virtual currency. Even though the state of Colorado in its legislation does not mention a particular cryptocurrency it restricts accepting donation from anonymous sources.
Even though the FPPC announced its decision against BTC a few days ago, it will continue to investigate the matter further, conduct follow-up meetings and discussions during the upcoming months. In 2017, the state of California previously discussed banning Bitcoin transactions for purchasing charity raffles. However, the proposal did not receive acceptance.