Donating cryptocurrencies to state and local political candidates is now allowed in California. The Fair Political Practices Commission has approved new rules allowing candidates to accept crypto donations, including Bitcoin. However, candidates need to convert them immediately to US dollars.
The move comes at a time when California aims to become a “crypto capital” in the U.S. In May, California Governor Gavin Newsom signed an executive order to foster innovation through crypto and blockchain technology.
California Political Action Committees Can Accept Crypto and Bitcoin Donations
California’s Fair Political Practices Commission approved new rules allowing political candidates to accept donations in crypto such as Bitcoin, reported Los Angeles Times on July 22. The new rules will be effective after 60 days.
However, crypto donations must be converted to US dollars immediately with the help of a registered cryptocurrency processor that records the name, address, occupation, and employer of each contributor.
Interestingly, California was one of the nine states that prohibited crypto donations to political candidates. With the passing of new rules, California becomes the 13th state, along with Washington D.C., to allow crypto and bitcoin donations to political campaigns.
