The state regulator of California, the Fair Political Practices Commission (FPPC), has declared that it is considering lifting the ban placed on accepting crypto donations for political campaigns after banning them for four years.
Amendments to the Political Laws
The FPPC disclosed in a commission meeting held recently that a discussion has been pre-arranged on the review of the use of cryptocurrencies for political donations in the state. According to the statement, the discussion will hold later this week on May 19.
Back in September 2018, the commission prohibited the exchange of cryptocurrencies as donations for political campaigns. The main reason as described by the commission then is that it is very difficult to track the origin of such funds, hence, it compromises the transparency of such candidates involved in the usage.
Recently, banning crypto donations in the political sector has been a go-to action for most countries and states. Just last month, the government of Ireland followed suit with the fear of intervention from Russia as the main reason. Different statements and reports have suggested that the Russian government has been evading the monetary sanctions imposed by the west by using Bitcoin and other altcoins to move funds.
Darragh O’Brien, a Minister in Ireland, said he believes the ban on cryptocurrencies as a means of donations for political campaigns can help in protecting against any malicious foreign interference while overhauling the entire political funding laws to monitor how individuals and political parties are funded.
The Crypto-Friendliness of the Governor of California
The Governor of California, Gavin Newsom, earlier this week issued an executive order that will create a clear regulatory framework for the crypto sector, which will ensure the protection of the investors. Also, the legislation will establish how blockchain technology can be integrated into the business sector in California.
The Senior Advisor to the Governor of California, Dee Dee Myers, when addressing the move made by Gavin Newsom, said that the western state is becoming a top location for firms in the crypto sector and lawmakers will try all they could to establish friendly legislation.
She added that “out of all the 800 businesses related to the blockchain technology in North America, about one-quarter of them are domiciled in California – a figure higher than any other state in the continent. Also, there have been others interested in coming here, and our responsibility is to help them.”