The proposal has been submitted to the Secretary of State of Texas, who is trying to resolve and clarify reporting requirements for political contributions made using cryptocurrency.according to Record:
“The new rules allow candidates, public officials and political committees to accept cryptocurrency. It does not distinguish between any type of cryptocurrency, such as Bitcoin.”
If approved, cryptocurrency donations and donations will need to be reported as in-kind donations or investments, not currency. According to the commission, the move “reflects the way the Federal Election Commission (FEC), the Internal Revenue Service (IRS) and the Securities and Exchange Commission (SEC) treat cryptocurrency donations.”
The proposal clarified that political and government activities will not be able to use cryptocurrency directly, and the cryptocurrency needs to be liquidated before the proceeds are spent. However, the committee mentioned:
“The rule does not require the declarer to liquidate its cryptocurrency assets within any specific time frame.”
In addition, the proposal plans to respond to the high volatility of cryptocurrencies by instructing filers to report the value of any accepted cryptocurrency as the fair market value at the time of receipt.
The legality of each encrypted contribution will be determined by confirming that the contributor is not a foreigner. According to the document, the new rules are based on § 571.062 of the Texas Government Code, which authorizes the committee to pass rules to govern Title 15 of the Electoral Code.
The State of Texas recently approved two proposals to promote the adoption of cryptocurrency blockchains.
According to a report by Cointelegraph, Texas House of Representatives Bills 1576 and 4474 have been signed into law by Governor Greg Abbott, allowing the establishment of a blockchain working group and amending the state’s Uniform Commercial Law to recognize cryptocurrencies under commercial law.
The Texas Ethics Committee proposed a new rule that allows government officials and politicians to accept Bitcoin (Bitcoin) And cryptocurrency contributions.