Political candidates in the state of Colorado may soon accept political contributions in bitcoin and other cryptocurrencies, thanks to a proposal made by Colorado Secretary of State Wayne Williams.
Colorado’s Office of the Secretary of State has released a draft of its ‘Rules Concerning Campaign and Political Finance’, which includes a new section dedicated to cryptocurrency donations, according to a report from the Denver Post. The update to the Code of Colorado Regulations does not call out any specific cryptocurrencies, however, does take into account any potential price fluctuations due to market volatility:
"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."
Donations made in cryptocurrency would be treated as cash, with the donation value determined by the price of the cryptocurrency at the time of the donation. Colorado will likely follow the US Federal Election Commission’s established policies for accepting cryptocurrency as in-kind donations, allowing the political candidate 10 days to transfer the value of the crypto donation into their official campaign account.
Despite Colorado’s Office of the Secretary of State making the addition to their campaign donation rules, Colorado’s Deputy Secretary of State Suzanne Staiert says that they are merely “going along for the ride,” adding that she believes accepting crypto donations will be “an accounting problem, potentially, for campaigns who want to use it.”
Colorado residents can provide feedback on the draft before 5PM on May 23, and if approved, Colorado would begin allowing potential political candidates to accept cryptocurrency in elections later this year.