California bans use of cryptocurrency in electoral finance
California’s political watchdog has advised the banning of the use of cryptocurrencies for donations to support candidates running for public office in the state.
The four-member California Fair Political Practices Commission (FPPC) voted 3-1 on Thursday to ban political donations in bitcoin and other digital tokens because of the difficulty in tracking their origins.
Transparency over political donations is coming under ever-closer scrutiny in the US as allegations of secret donations from Russia to fund elections are still under investigation.
Yet, the country’s political marketplace remains close to being unregulated. Indeed, the Federal Elections Commission still allows bitcoin donations to federal candidates.
Actions in other states
Similar political regulatory bodies in other states have discussed this issue. In August, North Carolina’s State Board of Elections Campaign Finance Office also barred electoral candidates from accepting funding in cryptocurrencies.
Kansas state’s Governmental Ethics Commission banned the use of cryptocurrencies in electoral financing in 2017.