During the July meeting of the California Fair Political Practice Commission, the state's restriction on cryptocurrency donations were unanimously repealed and adoption of new guidelines for taking funds were approved.

   In 2018, the commission banned cryptocurrency donations due to worries that it would be used to evade restrictions and guidelines.

       In the United States, there is no federal regulation regarding campaign contributions; instead, each state has its own regulations. The donation of cryptocurrencies is forbidden in nine US states, including California. Californian politicians can now accept cryptocurrency donations thanks to the lifting of the restriction. In the upcoming 60 days, the new regulation will go into effect.

The New Frequency of Crypto Donations

     All donations will be facilitated by a US based third-party payment processor that is registered with the Financial Crimes Enforcement Network of the United States Treasury.

     The donation will be converted to US dollars and transferred right away to the campaign's bank account. It will be ensured that donations don't go beyond the allotted amount. Additionally, the donor's identity will be confirmed.

Thoughts

     Although there are concerns about all types of donations in politics, since the regulations are set by the politicians, they are skilled at modifying them to suit their needs. The lifting of the ban on cryptocurrency donations is a sign of the industry's expanding influence in California.