Candidates running for public offices in California may not receive donations in cryptocurrencies, according to a new ruling from the state’s political watchdogs.
The Associated Press reported Thursday that the Fair Political Practices Commission for California voted 3-1 on Thursday to prohibit political donations in cryptocurrencies, noting the difficulty of tracking the origin of such donations and therefore the concerns over political transparency.
The decision follows a hearing in August at which the Fair Political Practices Commission discussed several election issues, including whether cryptocurrencies should be allowed in political donations. The committee didn’t reach a conclusion at the time, essentially needing a longer period to fully understand the issue.
While some commissioners at the hearing argued against an outright ban, others raised the question of how to verify the origin of a digital currency donation.
With the decision now made, a Fair Political Practices Commission representative told CryptoBuzz News on Friday that there will still be further debate and analysis on the issue in the coming period, stating:
“There was extensive research by staff, input from stakeholders that was publicly displayed on our website and public debate among the Commission today and that is the decision rendered. As was publicly stated by many if not all of the Commissioners, there will be further debate and analysis in the coming months and years.”
On a state level, some, like South Carolina, have taken a similar stance as California and prohibited bitcoin donations outright. Others, like Colorado, permit cryptocurrency funding, but have placed a cap on the amount that can be donated.