Candidates running for state and local offices in California will soon be able to receive crypto donations for their campaigns. This was after a vote by the Fair Political Practices Commission to authorize new rules that would permit crypto donations.
Details of the Rules
According to the new rules, candidates will be allowed to receive cryptocurrency donations if they can immediately convert them into US dollars. To convert the donations, candidates will have to use authorized crypto processors who will collect the address, name, occupation, and employer of contributors.
The new rules will come into effect within 60 days removing California from the list of the nine states that had instituted a ban on crypto donations. In twelve states plus Washington D.C., crypto donations are allowed in some form. It is already legal for candidates running for federal offices to accept crypto donations.
The Use of Political Donations is on the Rise
Today, over 20% of adult Americans are estimated to own crypto. As crypto acceptance has spread in use, so has its use in political donations. Besides growing, the scale at which it is growing is increasing. As the crypto industry has continued to mint new billionaires and millionaires, a growing number of them are seeking legal protection for their wealth.
Many in the crypto industry now recognize that while crypto was designed to operate outside the centralized financial system, it needs friendly laws to operate. In recognition of the popularity of crypto, many states have begun passing crypto-friendly regulations. However, there are still huge legal hurdles imposed on the crypto sector that make it unable to compete with mainstream financial services. As a result, those making crypto donations feel that donating to the right candidates could help them energize their campaigns, and pass crypto-friendly laws once they take political offices.
Players in the crypto world have been stepping up their activities, including setting up super PACs, to provide heavyweight financial backing to political candidates. Stakeholders in the sector have been finding candidates who are sympathetic to the crypto sector and getting behind them. By spending millions of dollars during elections, those in the crypto sector are announcing that they are an important political force in the US.
Crypto Support on Both Sides
Donations to crypto-friendly candidates are made to candidates on both sides of the political divide. It shows that no matter which side of the aisle they are on, there is a growing recognition of the significance of crypto to the masses. Due to the fact that more than twenty percent of adult Americans now own cryptocurrency, the position that a candidate takes on the issue of cryptocurrency has the potential to sway the outcome of any election.
Despite the recent market downturn, interest in crypto does not appear to be abating. The passing of the new rules in California is proof of this. It shows that Californians are interested in crypto, and it is an important political issue for anyone running for public office in the state.
