California reintroduces political donations in cryptocurrencies

USA – Cryptocurrencies enter California politics. While the Western American state has banned cryptocurrency donations to candidates running for public office, it has just passed a law that reintroduces them. However, this authorization is not complete and should be relaxed.

The Good Political Practices Commission (FPPC) is an independent, non-partisan, five-member commission. Its role is to ensure that civil servants act fairly and impartially in the process of public decision-making. In addition, it promotes transparency in government and builds public confidence in the political system.

Recall that the law of 2018 decided to ban donations in cryptocurrency to politicians. This ban applies to state and municipal political candidates. According to the FPPC, this decision was made due to difficulties in tracing the origin of donations. However, this runs counter to the goal of transparency that American political leaders should demonstrate.

In any case, this ban is no longer relevant: California lawmakers have just passed a law that reintroduces political donations in cryptocurrencies.

Politics – Cryptocurrency donations are allowed again

Through this solution, California residents can donate in cryptocurrencies such as bitcoin (BTC). The latter are free to choose the amount provided “within California dues”.

However, some limitations should be noted. As a first step, the people behind political campaigns will be required to immediately convert all donations received into United States dollars (USD). And only “payment systems registered with the US Department of the Treasury can be used.”

Second, each party must have adequate procedures for verifying the identity of donors. Moreover, every politician would have to legitimately believe that he knows the true identity of the donor.


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As for the donor, he must indicate his full identity (last name, first name, address, profession, employer). Otherwise, the donation is not allowed. Worse, it’s illegal. It is assumed that donations from an anonymous source are not allowed.

The FPPC Advocate General states:

“When developing these rules, we had to address the problems inherent in cryptocurrencies and the opportunity they present for illicit contributions, as they are by their nature – intentionally, in some circumstances – anonymous, and in many cases untraceable.”

David Bainbridge, FPPC General Counsel.

We must be happy with this decision. Because if California has a policy that is unfavorable for cryptocurrencies, this is the first step towards easing it.

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