Kansas House of Representatives lawmakers have introduced a bill proposing to change the legislature’s rules on political campaign donations.
Under the bill, no one would be allowed to make or accept cryptocurrency contributions exceeding $100 for any political candidate in a state primary or general election. For donations under $100, the recipient should “immediately convert” the cryptocurrency to US dollars, not use the cryptocurrency for expenses, and not HODL the funds.
The proposed bill included provisions that appeared to aim to mitigate foreign contributions to elections in Kansas by requiring personal information from those who send cryptocurrencies, including “who are not foreign nationals.” The contributors to the crypto campaign would also have to send the funds through a US-based exchange with certain Know Your Customer requirements.
The $100 limit would be based on the “fair market value” of the cryptocurrency at the time the contribution was received. Kansas lawmakers first introduced the bill in the House on January 25, later referring the legislation to the Elections Committee.
In 2017, the Kansas Governmental Ethics Commission said that cryptocurrency contributions were “too secretive,” specifically referring to Bitcoin (BTC). The state of California imposed a ban on political campaign donations in 2018, but changed tack in July, also capping contributions to $100.
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While it’s not a major election year in the United States, cryptocurrencies continue to be a problem for lawmakers at the federal and state levels. In April, the Irish government banned crypto-political donations, citing concerns about foreign interference in the country’s elections.
