California Lawmakers Lift Crypto Donations Ban For Political Campaigns

California Lawmakers Lift Crypto Donations Ban For Political Campaigns

  • Anonymous or outside contributions will not be allowed under the new restrictions.
  • All political campaigns must also have adequate KYC procedures.

As a result of a decision by California lawmakers, the state’s restriction on crypto contributions to state and local politicians has been lifted. Donations of any size (within the state’s contribution limitations) may be made in cryptocurrencies like Bitcoin, according to the Fair Political Practices Commission (FPPC). However, cryptocurrency contributions must be quickly converted into US dollars, and only payment processors registered with the US Treasury Department may be utilized.

Strict KYC Procedures Apply

According to the approved law, which was initially introduced in May, all state and municipal campaigns must also have “adequate KYC procedures that enable it to form a reasonable belief that it knows the true identity of each contributor.” For a contribution to be legal and genuine, the donor must include their name, address, employment, and employer.

Anonymous or outside contributions will not be allowed under the new restrictions intended to prevent foreign meddling. The fact remains that every crypto gathered must be transferred to US dollars immediately, despite the appearance that California is “adopting crypto” with this new regulation. It’s like saying that even if you give the state of California your crypto, it has no interest in retaining it for the long run.

According to experts, Bitcoin’s price has to maintain over $22,800 for the current trend to continue. Although the bears have forced a correction, the short-lived bullish move might fade. According to CMC, the Bitcoin price today is $22,633.36 USD with a 24-hour trading volume of $30,269,343,357 USD. Bitcoin is down 3.30% in the last 24 hours.

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