Candidates for state and local positions in California will soon be able to accept donations from the cryptocurrency campaign.
The Fair Political Practices Commission voted on Thursday to approve new rules to allow donations in digital currencies such as bitcoin.
The new rules state that applicants can accept donations in cryptocurrencies as long as they immediately convert the digital currency into US dollars. Applicants must use a registered cryptocurrency processor to manage a transaction that will collect the name, address, profession, and employer of each contributor.
Cryptocurrencies do not depend on banks. Instead, transactions are recorded digitally using blockchain technology.
The new California rules will go into effect within 60 days. California was one of nine states that banned crypto contributions. Twelve states, as well as Washington, D.C., allow some form of cryptocurrency contributions, according to the commission’s staff report.
Candidates in federal elections are already allowed to accept donations in cryptocurrencies.