The Federal Election Commission (FEC) and western US state of Colorado has planned rules to allow political candidates to accept crypto donations. So as to raise cryptocurrencies funds for contributing in Bitcoin campaigns.
The state of Colorado is well known for examining new laws and strategies like allowing effective cannabis all over the state. Recently, Rocky Mountain state politicians are certain on allowing political candidates to accept Bitcoin.
However, whether it is bitcoin or other cryptocurrencies donations, it would be subject to its state limits as cash donations and at the time of contribution value will be determined. Therefore, Wayne Williams, the State Secretary has submitted new proposed rules on 16th May, 2018.
The proposal reads:
“A committee may accept contributions in cryptocurrency, up to the acceptable limit for a cash or coin contribution. The amount of the contribution is the value of the cryptocurrency at the time of the contribution. The committee must report any gain or loss after the contribution as other income or receipts”.
Further, following the leads among FEC and other states, New Hampshire was the first to allow aspirants to accept crypto donation is 2014.
In an interview with Denver Post, Colorado’s deputy secretary, Suzanne Staiert said,
“The FEC is doing it now. So, we are just going along for the ride”.
Meanwhile, the FEC advisory opinions that guidelines are making the process more complicated, says deputy. Although, it is considering crypto in donation kind and the contributions above the aggregate limit for one donor have to be return or reimbursed.
Further Staiert explains;
“It’s going to be an accounting problem, potentially, for campaigns who want to use it”.
Other US Politicians are already into Bitcoin campaigns
Jared Polis, D-Boulder, a governor candidate says he was the first member of Congress to accept Bitcoin when it was worth $2000 in the year 2014. However, in the past in political campaigns other bureaucrats like Gray Johnson and Rand Paul have accepted BTC. Moreover, in December 2017, Missouri’s US senate candidate have also accepted Bitcoin donation at 0.28 value worth of $4500.
However, before the official’s decision, Colorado State Secretary is accepting comments on the proposed rules.