Categories: Bitcoin

Texas Ethics Commission Calls Pro-Crypto Rule for Political Donations

The proposal was presented to the Texas Secretary of State, who wanted to address and clarify the reporting requirements for political donations in cryptocurrencies. According to the profile:

“The new rule allows candidates, office workers and political bodies to accept cryptocurrencies. It doesn’t differentiate between cryptocurrencies like Bitcoin. “

If approved, crypto donations and contributions must be reported as donations in kind or as investments, not currency. According to the commission, the move mirrors “how the Federal Election Commission (FEC), the Internal Revenue Service (IRS) and the Securities and Exchange Commission (SEC) treat crypto donations.”

The proposal makes it clear that political campaigns and governments cannot allow direct spending on cryptocurrencies and require crypto liquidation before the proceeds are spent. However, the committee mentioned:

“The rule doesn’t require profilers to liquidate their crypto holdings within a specific timeframe.”

In addition, the proposal aims to combat the high volatility of cryptocurrencies by instructing profilers to report the value of any cryptocurrency that is accepted as a fair market value at that point in time.

The legitimacy of a cryptocurrency contribution is determined by the claim that the contributor is not a foreigner. According to the filing, the new rule is proposed under the Texas Government Code §571.062, which would allow the commission to enact rules for Title 15 of the Electoral Act.

Related: Cryptocurrencies are now legally recognized in Texas

The state of Texas recently approved two housing laws promoting the adoption of the cryptocurrency blockchain.

According to a Cointelegraph report, the Texas House Bills 1576 and 4474 were signed by Governor Greg Abbott, who approves the establishment of a blockchain working group and changes the state’s Uniform Commercial Code to recognize cryptocurrencies in accordance with the law.

The Texas Ethics Commission has proposed a new rule that would allow government officials and politicians to accept Bitcoin (BTC) and cryptocurrency donations.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.