• The California Fair Political Practices Commission (FPPC) has issued comprehensive guidelines for cryptocurrency donations in political campaigns.
• The manual updates provide specific regulations for accepting and reporting cryptocurrency contributions, including soliciting of donations per non-monetary contribution rules and applicable contribution limits.
• Cryptocurrency donations must go through U.S.-based payment processors registered with the U.S. Department of Treasury and Financial Crimes Enforcement Network while complying with Know Your Customer (KYC) protocols.
California Revises Cryptocurrency Contributions Rules to Enhance Campaign Disclosure
The California Fair Political Practices Commission (FPPC) has updated its manuals to provide comprehensive guidelines for cryptocurrency contributions in political campaigns. These revisions are made to enhance transparency and compliance with political campaigns as digital currencies become more popular.
Key Highlights of the Updated Guidelines
The manual updates provide explicit campaign disclosure guidelines that include the following major changes:
- Cryptocurrency contributions fall under non-monetary contribution rules.
- Applicable contribution limits are enforced to maintain fairness.
- Foreign principals, lobbyists, or anonymous sources are prohibited from making crypto contributions.
- Direct peer-to-peer cryptocurrency donations are not allowed; transactions must be made through designated payment processors acting as intermediaries on behalf of committees.
Know Your Customer (KYC) Protocols
Committees that solicit cryptocurrency contributions must ensure the effective implementation of KYC protocols, which require payments to be made through U.S.-based payment processors registered with the U.S. Department of Treasury and Financial Crimes Enforcement Network while complying with Know Your Customer (KYC) protocols.
Purpose Behind The Revision
The revision to the manuals is part of FPPC’s ongoing efforts to adapt campaign finance rules to accommodate digital currencies by providing clear regulations regarding their acceptance within political campaigns for greater transparency in campaign financing practices throughout California.Conclusion
These revised regulations will set a benchmark for handling digital assets’ challenges and opportunities in politics by ensuring ethical campaign practices throughout the state of California while creating an environment where cryptocurrencies can flourish under transparent conditions within political campaigns moving forward into the future