Political candidates in Colorado may accept Bitcoin or other cryptocurrencies in their campaigns soon.
In the beginning of May, a number of state laws to create guidelines for identifying crypto tokens were rejected in the Colorado state senate. Some said it was perceived as a reaction to the blockchain initiative in the state. However, things seem to be changing in the state.
According to the Denver Post’s report, Wayne Williams, Secretary of State, has prepared a proposal with draft rules and presented it on May 16th. The proposal was about allowing cryptocurrency donations in political campaigns.
The US Federal Election Commission (FEC) has already accepted Bitcoin as in-kind donation currency that can be used in political campaigns. However, the campaign should transfer the cryptocurrency into its official depository within 10 days.
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The donations made in the form of cryptocurrency will be seen as cash, and the value will be measured according to the time when the donation takes place. According to Denver Post, Colorado is likely to follow the FEC’s decision to recognize cryptocurrency as an in-kind donation. In in-kind donations, the donators can retreat their donations if the value of the donated cryptocurrency exceeds its total limit.
Cryptocurrency Donations May Cause Problems
Cryptocurrency donations may be appropriate for some donors, however, there may be some down sides to it. Colorado’s deputy secretary of state, Suzanne Staiert, comments that it could create an “accounting problem” for campaigns that want to benefit from it. But Staiert also added, “FEC is doing it now, so we are just going along for the ride.”
Colorado will not be the first state to accept cryptocurrency in local donations made to political campaigns in the United States. The first state to allow candidates to use crypto was New Hampshire in 2014.