In legalizing Bitcoin political donations, it is set to be joined by the state of Colorado and a few others. The state is currently considering a draft proposal concerning crypto donations for political campaigns, according to local media.
THE TREND WILL BE JOINED BY COLORADO
The Colorado Secretary of State, Wayne Williams, submitted the proposal earlier this week. Bitcoin donations would comply with the same rules as cash donations According to the details of the draft, the value of such donations are determined at the time of the contribution due to the volatility of cryptocurrencies.
“The FEC is doing it now, so we are just going along for the ride,” as commented by Williams and State Deputy Secretary, Suzanne Staiert.
The state government welcomed comments from the general public with the move under consideration. The office of the Colorado Secretary of State could be contacted by interested people on or before May 23rd.
IN BITCOIN’S POLITICS
An integral part of the American political landscape are donations that often play a profound role in shaping policy developments. Also, Cryptocurrencies and Bitcoin play a significant role in the political campaign fundraising arena.
Since the approval of the Federal Election Commission, the cryptocurrency contributions to campaign financing in 2014 has financially increased as such contributions as “in-kind donations” are categorized by the decision of the FEC. Back in 2014, the trend in the New Hampshire was the often on the first to jump where the first U.S. politician to accept Bitcoin contributions became Republican Andrew Hemingway.
During his 2016 presidential bid, Rand Paul also accepted crypto donations. As received by Austin Petersen from Missouri was the largest reported crypto donation to a political campaign amounting to 0.284 BTC ($4,500). At present, Patrick Nelson, an aspiring congressional from New York is willing to accept Bitcoin donations to his campaign through Bitpay.
In campaign fundraising, there are those who oppose the adoption of crypto contributions. The top of the list of objections against the trend are issues arising from anonymity and the risk of “dirty money” being funneled into politics. Some seems to be at odds with the philosophy of political donations in America due to the lack of full transparency in crypto transactions. The problem of volatility also occurs which makes cryptos a huge accounting headache.
Where Staiert even agreed by saying:
“It’s going to be an accounting problem, potentially, for campaigns who want to use it.”