Tribalism in crypto communities: a reality?

In Kansas, the Legislature is considering a new bill. This relates to crypto donations made during campaigns for primary or general elections. The bill indicates an amount limit for these donations as well as several restrictions related to their use.

A variety of restrictions on the amount and use of donations

Kansas is in the process of regulating how crypto is used to support election campaigns. The bill under consideration therefore caps crypto donations at $100 made to politicians. He mentions that the ceiling should be based on the “fair market value» of the crypto concerned. This would be the market value at the time the donation was received by the payment processor.

The new bill also stipulates that recipients of donations must follow certain rules in order to use them. In particular, they do not have the right to hold in the long term, as assets, what they have received. They must also refrain from spending the amounts received. Another rule says crypto donations must be converted into US dollars, immediately upon receipt. Then, the beneficiaries will have to take care of depositing the money into the campaign account.

Toward Restrictions on Political Crypto Donations in Kansas

Crypto donations will need to be handled in a specific way

The new bill does not impose restrictions only on the amount and use of political donations. He was also interested in how the latter should be treated. Related to this, political bodies should do more due diligence in handling crypto donations. The project says that only political donations from US-based crypto payment processors would be accepted.

To do this, processors should be able to ensure that know the true identity of the contributor. They must therefore follow procedures for collecting the name and address of each contributor. This information should then be forwarded to the committee of the political party to which the donations were sent.

This is the first bill in Kansas that addresses political donations in crypto. The bill is certainly full of restrictions, but it is less drastic than that of California in 2018. Indeed, California had prohibited the use of crypto donations during campaigns for state and municipal elections. However, it recently passed a law that puts an end to this ban.

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