The state of Colorado could soon allow political committees to accept contributions in cryptocurrency.
The Office of the Colorado Secretary of State published a new working draft of its “Rules Concerning Campaign and Political Finance” on Wednesday, which notably includes a new section on cryptocurrency donations.
The document, which updates the Code of Colorado Regulations, does not specify any particular cryptocurrencies in the new rule, but does allow for market volatility and includes certain restrictions.
The proposed guidance states:
“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.”
Further sections note that anonymous contributions must be below $20, with contributions at or above that level being donated to a charitable organization or the state treasurer.
No maximum limit is specified in the document for contributions from identified donors, instead referring to supplementary documentation. According to the Secretary of State’s website, this limit can range from $200 to no prohibition, depending on the position for which a candidate is running.
Residents of Colorado can provide feedback to the secretary’s office on the draft until 5:00 p.m. local time on May 23. If approved, Colorado would become the latest state to allow cryptocurrency donations for this purpose.
The Federal Election Commission – which oversees national-level campaigns – previously announced it would allow bitcoin donations to political campaigns, as previously reported by ExposedCrypto. However, it is unclear whether the 2014 guidance would apply to the wider set of cryptocurrencies which exist today.
Vote button image via Shutterstock