Cryptocurrency Donations for Political Campaigns

Colorado (U.S.) is a state that is well known for testing new laws and guidelines like allowing recreational cannabis throughout the state. This week politicians from the Rocky Mountain state are considering allowing political candidates to accept bitcoin and other forms of digital assets. Secretary of State Wayne Williams made the proposal for allowing donations of cryptocurrencies in political campaigns in draft rules presented on May 16, the Denver Post reports.
The US Federal Election Commission (FEC) has already approved the acceptance of Bitcoin as in-kind donations for political campaigns, which gives the campaign 10 days to transfer the donated cryptocurrency into their campaign’s official depository.
Donations in crypto would be treated as cash donations, the value being determined at the time of donation. According to the Denver Post, Colorado is likely to follow the FEC’s designation of cryptocurrency being an in-kind donation, which would return or refund contributions back to the donators if the value of the donated cryptocurrency exceeds the aggregate limit.
While such donations may be convenient for the donator, Colorado’s deputy secretary of state Suzanne Staiert said, “[i]t’s going to be an accounting problem, potentially, for campaigns who want to use it.” However, Staiert also added that the “FEC is doing it now, so we are just going along for the ride.”
Colorado would not be the first U.S. state to allow donations. U.S. politicians have already accepted cryptocurrencies as campaign donations in the past. New Hampshire, began allowing candidates to accept contributions in cryptocurrency in 2014.