The Texas Secretary of State received the proposal. It sought to clarify and address the reporting requirements for political contributions made using cryptocurrencies. According to the filing
“The new rule allows candidates, officeholders and political committees the ability to accept cryptocurrency. It doesn’t distinguish between different types of cryptocurrency, such as Bitcoin.
If the approval is granted, cryptocurrency contributions and donations will be reported as either in-kind contributions, or investments. Not currency. This move, according to the Commission “mirrors how the Federal Election Commission [FEC], Internal Revenue Service [IRS] and Securities and Exchange Commission(SEC) treat crypto contributions.”
This proposal clarifies that cryptocurrencies cannot be used directly by political or governmental campaigns. Instead, they will need to be liquidated before being spent. The Commission did mention:
“The rule does not require filers that they liquidate their cryptocurrency holdings in a specific timeframe.”
The proposal also aims to combat the volatility of cryptocurrency by asking filers to report the fair market value of any accepted cryptocurrency at the time they receive it.
An affirmation by the contributor that they are not foreign nationals will determine whether a crypto contribution is legal. The filing states that the proposed rule is under Texas Government Code SS571.062. This authorizes the Commission’s adoption of rules to govern Title 15 of the Election Code.
Related: Texas now recognizes cryptocurrencies under commercial law
Two house bills in Texas that encourage cryptocurrency adoption were recently approved by the state.
Cointelegraph reports that Texas House Bills 1576 & 4474 were signed by Governor Greg Abbott. They allow for the creation of a Blockchain Working Group and amend the state’s Uniform Code to recognize cryptocurrency under commercial law.
Texas Ethics Commission has proposed a new rule that allows politicians and government officials to accept Bitcoin (BTC), and other cryptocurrency contributions.