The State of Colorado will soon allow political groups to accept contributions made in cryptocurrency.
On Wednesday, the Office of the Colorado Secretary of State published a recent draft of its “Rules Concerning Campaign and Political Finance,” which specifically includes a new section on cryptocurrency donations.
The document does not mention any specific cryptocurrency in the new rule, but it does allow for market volatility and has a couple of restrictions on this matter.
The proposed guidance says:
“A committee may accept contributions in cryptocurrency, up to the acceptable limit for a cash or coin contribution. The amount of the contribution is the value of the cryptocurrency at the time of the contribution. The committee must report any gain or loss after the contribution as other income or receipts.”
Succeeding sections state that anonymous contributions must not exceed $20, with contributions above that level donated to a charitable institution or the state treasurer.
The document does not specify a limit for contributions from identified donors, but suggests supplementary documentation instead. The Secretary of State’s website says this limit can range from $200 to no prohibition, depending on what position a candidate is running for.
If the draft is approved, Colorado could become the newest state that allows cryptocurrency donations for this purpose.