California Reviews Ban on Cryptocurrency Donations for Political Campaigns

Since 2018, the state of California has banned all political donations in cryptocurrencies, citing fear of foreign political interference and the potential of using digital assets to bypass campaign contribution limits. However, that may change this upcoming week, as the state’s Fair Political Practices Commission decides on Thursday whether to amend the regulation.

Groups monitoring campaign finance say virtual assets carry a risk of enabling anonymous and private campaign contributions.

According to Cointelegraph, the cryptocurrency prohibition only applies to local and state political campaigns, not those at the federal level. This means that political candidates like Democrat Aarika Rhodes, who is seeking office in California’s 32nd congressional district, can exhort supporters to donate Bitcoin without penalty.

Other states have taken a different approach: Colorado only allows crypto donations up to the same level as regular currency. And in 2018, South Carolina declared that cryptocurrency was not eligible for campaign contributions.