U.S. Voters Can Now Donate In Crypto To Politicians; However Conditions Apply

Crypto News

What comes as a latest crypto news in relation to U.S. political campaigns, the Kansas Legislature has considered introducing a new bill that, if passed, would place a $100 limit on the amount of cryptocurrency that can be donated. In the event that the law is set in motion, this cap would be determined by the “fair market value” of the cryptocurrency at the moment it was received by the payments processor.

Kansas State Tightens Crypto Donations

In addition to this, the measure suggests imposing significantly more stringent crypto regulations on how virtual currencies can be utilized by political campaigns in the state of Kansas. Any cryptocurrency contributions that are received are required, per the parameters of the new laws, to be immediately translated into U.S. dollars, after which they are to be placed into the campaign account.

The four-page official document stated:

No person shall make or accept any cryptocurrency contribution for any candidate or candidate committee that in the aggregate exceeds $100 for any one primary or general election from any one person.

According to the guidelines, political campaigns will not be permitted to spend cryptocurrencies, nor will they be allowed to store them as an asset for an extended period of time. The size of the donations and the use of cryptocurrency will not be the only factors that will be subject to restrictions. The rules also propose political bodies would also be required to do further due diligence over the processing of cryptocurrency donations.

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However, donations made in cryptocurrency would be accepted only if they come through a crypto payment processor that’s based in the United States, as per the rules that have been presented. In order to”establish a “reasonable belief” that the contributor’s real identity is known, the processing firm should deploy procedures and KYC practices. As part of these protocols, the party committee will always be informed of who has sent money and when.

Crypto In U.S. Political Campaigns

Donations made using cryptocurrencies have already made a noticeable impact on the funding of U.S. elections. There have been claims that numerous political candidates received cryptocurrency donations totaling $580,000 worth for the election cycle of 2022. This number is likely lower than it should have been since some political action groups failed to declare the money they received to the Federal Election Commission (FEC).

Following the failure of the FTX cryptocurrency exchange, the legitimacy of donations made by crypto-related individuals and organizations is being investigated. Crypto news regarding the FTX collapse sent tremors throughout the sector and disclosed that the company’s founder, Sam Bankman-Fried, had given substantial donations to politicians in the United States.

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The post U.S. Voters Can Now Donate In Crypto To Politicians; However Conditions Apply appeared first on CoinGape.

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Pratik Bhuyan