This week the Secretary of State, Wayne Williams, presented the proposed guidelines and officials are looking for commentary from Colorado residents. The state of Colorado is considering giving political candidates the ability to raise funds using cryptocurrencies.
Colorado Secretary of State May Allow Politicians to Accept Cryptocurrencies for Campaigns
Colorado is a state that is well known for testing new laws and guidelines like allowing recreational cannabis throughout the state. This week politicians from the Rocky Mountain state are considering allowing political candidates to accept bitcoin and other forms of digital assets.
Secretary of State Wayne Williams proposed the new rules in a draft submitted on May 16, 2018. The proposal states:
A committee may accept contributions in cryptocurrency, up to the acceptable limit for a cash or coin contribution. The amount of the contribution is the value of the cryptocurrency at the time of the contribution. The committee must report any gain or loss after the contribution as other income or receipts.
Crypto-Campaign Acceptance: An Accounting Nightmare
In an interview with the Denver Post Suzanne Staiert, Colorado’s deputy secretary of state explains the proposal going through is likely to happen. “The FEC is doing it now”, Staiert details. “So we are just going along for the ride.”
However, the FEC advisory’s guidelines are making the accounting process more difficult explains the deputy. The FEC advisory laid out how the organization thinks committees should deal with the accounting aspects of accepting cryptocurrencies. “It’s going to be an accounting problem, potentially, for campaigns who want to use it”, Staiert further noted.
Back in 2014, U.S. Rep. Jared Polis, from Boulder Colorado accepted $2,000 worth of BTC for his campaign. Polis thinks politicians who hold cryptocurrencies should also declare their holdings.
U.S. Politicians Have Already Accepted Cryptocurrencies in the Past for Campaigns
A Colorado state official already has accepted donations in Bitcoin Core (BTC) back in 2014 as U.S. Rep. Jared Polis, D-Boulder accepted $2,000 worth of BTC that year. Other bureaucrats have accepted BTC in the past for political campaigns as well such as Rand Paul and Gary Johnson. Further, news.Bitcoin.com recently reported on the largest BTC donation given to a candidate so far this past December. The Republican U.S. Senate candidate Austin Peterson accepted roughly 0.284 BTC which at the time was worth over $4,500 USD.
The Colorado Secretary of State is asking state residents to comment on this issue before officials come to a decision on the matter.