Last Updated: August 14, 2023
• California’s Fair Political Practices Commission (FPPC) has released comprehensive regulations for cryptocurrency donations in political campaigns.
• The manual updates provide guidelines for accepting and reporting cryptocurrency contributions, including the application of contribution limits, prohibitions on foreign principal donations, and use of designated processors as intermediaries.
• Committees must comply with KYC protocols when soliciting cryptocurrency contributions to ensure transparency and compliance.
California Revises Cryptocurrency Contributions Rules
The California Fair Political Practices Commission (FPPC) has released an array of comprehensive disclosure regulations within its manuals to address cryptocurrency contributions to political campaigns. These regulations are made to enhance transparency and compliance with political campaigns.
The revised regulations provide comprehensive guidelines for accepting and reporting cryptocurrency contributions, including:
- Cryptocurrency contributions fall under non-monetary contribution rules.
- Applicable contribution limits apply.
- Prohibition on accepting cryptocurrency contributions from foreign principals, lobbyists, or anonymous sources.
- Direct peer-to-peer cryptocurrency donations are not allowed; transactions must be made through designated processors acting as intermediaries.
U.S.-Based Payment Processors & KYC Protocols
Cryptocurrency donations must go through U.S.-based payment processors registered with the U.S. Department of Treasury and the Financial Crimes Enforcement Network while complying with Know Your Customer (KYC) protocols.
Ensure Transparent & Compliant Campaign Financing
Committees that solicit cryptocurrency contributions must ensure the effective implementation of KYC procedures to maintain transparent and compliant campaign financing.
“Benchmark” For Handling Digital Assets Challenges & Opportunities In Politics
The revision to the manuals is part of California’s ongoing efforts to adapt campaign finance rules to the changing landscape of digital currencies, setting a benchmark for handling digital assets’ challenges and opportunities in politics.