A recent prohibition that prevented political candidates from taking crypto donations is being lifted in the state of California, which is notable for having some of the most stringent financial laws in the United States. Donations in the form of Bitcoin, Ethereum, or any other digital currency can now be accepted by candidates for office in the state of California.
Donations in Cryptocurrency to Political Causes Are Allowed in California
Since 2018, the state of California has enforced a restriction on accepting donations of cryptocurrencies. The decision to reverse course was made by the Fair Political Practices Commission. [Citation needed] Prior to this, California was one of only nine states in the country that did not permit donations of digital currency to electoral candidates. However, the state has since joined a list of 12 regions, along with the District of Columbia, that have eventually said “yes” to allowing such donations.
The decision in California has one significant drawback, which is that all cryptocurrency contributions made as political contributions must instantly be converted to USD. Therefore, no candidate can keep the cryptocurrency units or possibly utilize them to participate in or contribute to the growth of the cryptocurrency. They must be converted into U.S. dollars and cents without delay, then applied toward the purchase of a promotional item or some other aspect of the candidate’s campaign. Additionally, the transfer of funds must take place through a financial platform situated in the United States.
These new regulations only apply to campaigns at the state and local levels, as candidates for federal office are already free to receive cryptocurrency payments. It is anticipated that the contribution regulations will be put into effect within the next thirty days.
One of the most recent political candidates in the United States to accept cryptocurrency campaign contributions was Holly Kim, a Democrat from Illinois who was running for reelection as the state’s Lake County Treasurer. Holly Kim was one of the most recent political candidates to accept cryptocurrency donations.
In the past few months, California has assumed a role that might be described as relatively active in the world of cryptocurrencies. After Vice President Joe Biden issued an executive order regarding cryptocurrencies earlier this year, California Governor Gavin Newsom announced that he would do the same thing. He also officially confirmed that he planned to demand the academic tasks of the risks and benefits associated with digital currency. The goal of this study is to determine how the assets could be incorporated into the systems of the state’s government and how they could assist businesses in the region.
A Basic Income Would Not Be a Viable Option
Back in September of 2020, the state of California made the announcement that it was examining the possibility of providing all of its people with a basic universal income (BUI) in the form of cryptocurrencies. This meant that in the event that the proposal was approved and ultimately codified into law, each and every person residing in the state of California would be eligible to receive a predetermined sum of money on a monthly basis to cover their costs of living.
The strategy was never implemented, most likely because of the high cost that would have been associated with taking such a step. With a population of over 50 million people, California has the highest United States population. Because of this, releasing a basic income check to each and every resident of the state each and every month could very well likely require significant tax increases in addition to other measures that would put the state in a significant amount of debt. Therefore, even though people would be accumulating riches, they would also be paying those resources and access in spades.