Updates to Campaign Disclosure Manuals: Guidelines for Cryptocurrency Contributions
The California Fair Political Practices Commission (FPPC) has recently introduced new guidelines regarding campaign disclosure, with a focus on cryptocurrency contributions. Here are the key points:
1. Cryptocurrency Contribution Rules:
– Cryptocurrency contributions are subject to applicable limits and specific requirements.
– Contributions cannot be accepted from foreign principals, lobbyists, or anonymous sources.
– U.S.-based payment processors registered with the U.S. Department of Treasury and the Financial Crimes Enforcement Network must be used.
2. Conversion and Deposit:
– Payment processors must convert cryptocurrency contributions to U.S. dollars at current exchange rates.
– Funds must be deposited into the committee’s campaign bank account within two business days.
– Cryptocurrency contributions are considered non-monetary and processing fees are not deducted from the reported amount.
3. ACLU Violation:
– The ACLU of Northern California was found to have violated Government Code Sections, resulting in a proposed penalty of $6,500.
– Violations included failure to disclose reportable activity and improper disclosure statements on an advertisement.
4. Delegation of Penalty Settlement:
– Proposed Regulation 18318 delegates the authority to the Executive Director to settle monetary penalties for a lesser sum.
– Guidelines outlining the circumstances warranting a settlement were also presented.
5. Amendments to Campaign Contribution Regulations:
– Proposed amendments to Regulations 18531.1 and 18537.1 were discussed to address the return, transfer, or carry-over of campaign contributions when a candidate withdraws or does not run in an election.
In conclusion, these updates highlight California’s commitment to transparency and accountability in political practices, particularly with regard to cryptocurrency contributions. The FPPC aims to establish a more regulated and transparent political financing system.
Hot Take:
The FPPC’s introduction of guidelines for cryptocurrency contributions is a crucial step in ensuring the integrity of political financing in California’s ever-evolving landscape. By addressing the specifics of accepting and processing cryptocurrency, the FPPC demonstrates its dedication to adapting regulations to new technologies while maintaining transparency and accountability. This move will likely set a precedent for other states grappling with the intersection of cryptocurrency and politics.
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