California New Law Allows Donating In Cryptocurrencies

California has introduced a new law that allows state and local office political candidates to receive donations in cryptocurrency. The newly passed bill will come into effect in 60 days. The state’s Fair Political Practices Commission approved the new requirement, the LA Times reported on July 21. Additionally, as per the new law norms, the candidates can only accept the crypto donation when they can immediately convert the digital assets into fiat. New Law Focuses on the KYC The new law specifies that candidates must work with authorized and registered cryptocurrency processors to complete the transaction. And for the processor part, they must perform the Know Your Customer (KYC) practices like submitting the contributor’s name, address, occupation, employer, and other relevant details. Guidelines On Crypto Donation By FEC According to some of the communication, committees are eligible to receive Bitcoin as long as they sell the asset. However, the FEC clarified that possessing Bitcoin does not absolve political organizations of their duty to return a donation that comes from an illegal source or exceeds the contributor’s contribution cap. The FEC states that since 2014, donations made using cryptocurrencies have been permitted in federal elections. Some state governments, however, are opposed to the idea and have passed legislation outlawing contributions. The panel also stated that political committees should value donatio...