• California has issued comprehensive guidelines for cryptocurrency donations in political campaigns.
• The regulations are designed to enhance transparency and compliance with political campaigns.
• Key highlights of the updated guidelines include contribution limits, prohibition of foreign contributions, and requirements for U.S.-based payment processors.
California Revises Cryptocurrency Contributions Rules
California’s Fair Political Practices Commission (FPPC) has unveiled a set of comprehensive disclosure regulations regarding cryptocurrency donations in political campaigns. The FPPC is responsible for maintaining ethical campaign practices and is committed to ensuring transparent campaign financing in the state.
Key Highlights of Updated Guidelines
The manual updates provide comprehensive guidelines for accepting and reporting cryptocurrency contributions which include:
- Cryptocurrency contributions fall under non-monetary contributions, allowing political committees to solicit them.
- Applicable contribution limits must be observed to ensure fairness.
- Contributions from foreign principals, lobbyists, or anonymous sources are prohibited.
- Peer-to-peer cryptocurrency donations are not allowed – transactions must be made through designated processors acting as intermediaries on behalf of committees.
- Cryptocurrency donations must go through U.S.-based payment processors that comply with Know Your Customer (KYC) protocols.
Committees Must Ensure KYC Protocols Are Implemented
Committees that solicit cryptocurrency contributions must ensure the effective implementation of KYC protocols. These regulations are aimed at addressing digital assets’ challenges and opportunities in politics and setting a benchmark for handling them properly.