Home News Texas Ethics Commission seeks pro-crypto rule for political contributions

Texas Ethics Commission seeks pro-crypto rule for political contributions

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The Texas Ethics Commission has suggested a new regulation allowing government officials and lawmakers to accept Bitcoin (BTC) and other cryptocurrency donations.

The proposal, which filed with the Texas Secretary of State, aims to address and clarify the reporting obligations for cryptocurrencies used in political contributions. According to the document:

“The new regulation allows candidates, elected officials, and political groups to receive bitcoin donations. It doesn’t differentiate between other sorts of cryptocurrencies, such as Bitcoin.”

If permitted, crypto donations and contributions must be recorded as in-kind contributions or investments rather than as cash. This action “reflects how the Federal Election Commission (FEC), Internal Revenue Service (IRS), and Securities and Exchange Commission (SEC) regard bitcoin contributions,” according to the Commission.

Political and governmental campaigns would not be able to spend cryptocurrencies directly, according to the plan, and will be required to sell cryptocurrencies before spending the revenues. However, the Commission made the following remark:

“The rule would not compel filers to liquidate their crypto holdings within a specific time window.”

The proposal aims to mitigate the significant volatility of cryptocurrencies

Furthermore, the proposal aims to mitigate the significant volatility of cryptocurrencies. By requiring filers to record the fair market value of each accepted crypto at the time of receipt.

Every crypto donation will be lawful if the contributor certifies that he or she is not a foreign national. The new regulation proposed under Texas Government Code 571.062, according to the application. Which gives the Commission the authority to make regulations to implement Title 15 of the Election Code.

Texas has passed two legislations in the House of Representatives to encourage the adoption of crypto blockchains.

Governor Greg Abbott signed House Bills 1576 and 4474 into law. Allowing the formation of a blockchain working group and amending the state’s Uniform Commercial Code. In order to recognise cryptocurrencies under commercial law, according to sources.

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