cryptocurrency

California Opens Door to Political Donations for Cryptocurrency

California – which arguably has some of the strictest financial laws in the US – is lifting its recent ban on political candidates Accepting cryptocurrency donations. Thus, anyone running for a position in the Golden State can now accept donations in the form of BTC, Ethereum, or any other digital asset.

California Allows Political Donations to Cryptocurrency

The ban on cryptocurrency donations in California has been in place since 2018. The reversal occurred at the hands of the Committee on Fair Political Practices. Prior to that, California was one of only nine states in the country that did not allow digital currency donations to political campaigns, though it now joins a list of 12 regions that — along with Washington, D.C. — eventually said “yes.”

The only downside to the California rule is that all crypto donations as political contributions must be immediately converted into US dollars. Thus, no candidate can hold crypto units or potentially use them for investment or help in their growth. It must be immediately converted into US dollars and cents and put into a political item or other part of the election campaign. Funds must also be transferred through a US-based financial platform.

These new rules only apply to state and local campaigns, as all federal campaigns are already allowed to accept crypto donations. Donation regulations will likely be in place within the next 30 days.

Among the most recent political candidates to agree to accept crypto donations in America was Holly Kim, an Illinois Democrat who was seeking re-election as the state’s Lake County treasurer.

California has been playing a fairly active role in the cryptocurrency world over the past few months. After Joe Biden launched an executive order on cryptocurrency earlier this year, California Governor Gavin Newsom announced that he would do the same and require a study of the risks and benefits of digital currency to find out how and how the assets can be used in state government systems. It can help businesses in the area.

Basic income won’t work

Back in September of 2020, California announced that it was considering issuing a universal basic income (BUI) in the form of cryptocurrency to all its residents. This means that if the idea passes and becomes de facto law, every Golden State resident will receive a certain amount of money each month to cover living expenses.

The maneuver never occurred, likely due to the high price that would come with such a move. California—which has a population of over 50 million—has the highest population in the country, and issuing a basic income check each month to every surviving resident will likely require huge tax increases and other measures that would put the state in significant debt. Thus, while individuals will earn resources, they will return their spades.

Tags: california, crypto, political donations

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