In the U.S. state of California, candidates running for public offices are restricted by the state’s political watchdogs from receiving donations in the form of cryptocurrencies.
Mentioning the difficulty of tracking in the origin of donations made with cryptocurrency, the Fair Political Practice Commission (FPPC) for the Golden State agreed with 3-1 vote to prohibit political donations made in cryptocurrencies, reported The Associated Press.
The decision followed after a hearing in August where FPPC discussed several election-related issues, including whether cryptocurrency should be allowed in political donations or not.
Few commissioners also argued against an outright ban at the hearing while some others raised the question of verification on the origin of such virtual donations.
Reportedly talking with CoinDesk on Friday an FPPC representative stated, “There was extensive research by staff, input from stakeholders that was publicly displayed on our website and public debate among the Commission today and that is the decision rendered. As was publicly stated by many if not all of the Commissioners, there will be further debate and analysis in the coming months and years.”
The U.S. Federal Election Commission currently allows candidates to accept donations in cryptocurrencies like bitcoin, as per a ruling from 2014.
Apart from California, some other states have also tackled this issue, and South Carolin among them has banned such donation while Montana and Colorado allow them with some restriction.