• The Committee on Elections in Kansas recently proposed a bill to cap political donations via crypto at $100.
• Other jurisdictions have also attempted to ban crypto donations to politicians, due to the potential for anonymous money flowing through the political system.
• The United States Federal Election Commission first addressed crypto donations back in 2014, when it acknowledged the option to donate in Bitcoin and classified them as “in-kind contributions” with a maximum contribution limit of $6,600 per election cycle.
Overview
The Committee on Elections introduced a bill to the Kansas House of Representatives that would cap political donations via cryptocurrency at $100. Other jurisdictions have also attempted to ban crypto donations due to concerns about anonymous money flowing through the political system. In 2014, the United States Federal Election Commission acknowledged Bitcoin donations and classified them as “in-kind contributions” with a maximum contribution limit of $6,600 per election cycle.
Attempts To Ban Crypto Donations
Various countries and jurisdictions have attempted to ban or restrict cryptocurrency donations due to concerns around anonymity and dark money entering politics. Russia, China, Ireland and Canada are just some of the nations that have taken steps towards regulating such activities by banning or capping donation amounts.
US Federal Election Commission’s Approach
In 2014, the US Federal Election Commission (FEC) became one of the first authorities responsible for enforcing election law to approach this issue by acknowledging BTC as an accepted form of payment for campaign contributions under “in-kind contributions” with a maximum amount capped at $6,600 per election cycle. This limitation was adjusted for inflation following each electoral cycle so that it stands today at $3,300 for primary elections and $3,300 for general elections. However this prevents campaigners from spending received Bitcoin directly as they must liquidate it into fiat currency before depositing it into their accounts.
Innovation Amidst Regulatory Uncertainty
Despite attempts by various governments around world crack down on crypto donations, many believe that there is still room for innovation within this space particularly where campaigns are concerned given its inherent traceability benefits over traditional forms of payment such as cash or checks which can be used anonymously without any records being kept.
Conclusion
It remains uncertain how successful legislative initiatives will be when it comes to capping digital asset payments but regardless of what happens next such proposals serve only further highlight the growing importance of blockchain technology in our increasingly digital world where large sums of money can move quickly and easily between different parties in an anonymous manner if left unchecked .