Colorado is a state that is well known for testing new laws and guidelines. Secretary of State Wayne Williams, became one of the politicians who offered to consider the possibility that political candidates could accept donations in Bitcoins and other forms of digital assets. According to the details of the project, Bitcoin’s donations will comply with the same rules as cash donations. Due to currency volatility, the amount of such donations is determined during the deposit.
Commenting on this step, Deputy State Secretary Suzanne Staiert said:
“The FEC is doing it now, so we are just going along for the ride.”
The state government welcomes the general public’s comments on this statement. Active citizens can contact the office of the Secretary of State of Colorado until May 23 and make suggestions or comments.
Bitcoin in the US political sphere
It’s no secret that donations are an integral part of the American political landscape and sometimes play an important role in shaping political events. More recently, donations have been accepted using cryptocurrencies, such as Bitcoin, which greatly simplified the fund-raising process and gradually introduces the digital currency in the American political sphere.
The use of cryptocurrency contributions significantly increased after the Federal Election Commission (FEC) approved in 2014 contributions to the crypto currency in the campaign financing. The FEC decision classified such contributions as “in-kind donations”. The first to carry this trend back in 2014 New Hampshire, when the Republican Andrew Hemingway became the first US politician who agreed to accept Bitcoin’s contributions.
Rand Paul also accepted donations in crypto during his presidential bid in 2016. The largest crypto donation for the political campaign, which is known to date, is 0.244 BTC (4,500 US dollars) received by Austin Petersen from Missouri. Currently, the encouraging Congress of Patrick Nelson of New York is accepting Bitcoin donations to his campaign via Bitpay.
Although there are those who oppose the adoption of crypt deposits in the fundraising campaign. Issues related to the anonymity and risk of “dirty money” being sent to politics are the top of the list of objections against this trend. Absence of full transparency in crypto transactions, which contradicts the philosophy of political donations in America. There is also the problem of volatility, which makes cryptocurrencies a huge headache.
“It’s going to be an accounting problem, potentially, for campaigns who want to use it”,
– Staiert summed up in a recent interview.