California Bans Bitcoin Donations in Political Campaigns

Candidates running for public offices in the U.S. state of California may not receive donations in cryptocurrencies, according to a new ruling from the state’s political watchdog.

The Associated Press reported Thursday that the Fair Political Practices Commission (FPPC) for the Golden State voted 3-1 on Thursday to prohibit political donations in cryptocurrencies, citing the difficulty of tracking the origin of such donations and concerns over political transparency.

The decision follows a hearing in August at which the FPPC discussed several election issues, including whether cryptos should be allowed in political donations. The committee didn’t reach a conclusion at the time, needing a longer period to fully understand the issue.

While some commissioners at the hearing argued against an outright ban, others raised the question of how to verify the origin of a virtual currency donation.

With the decision now made, an FPPC representative told CoinDesk on Friday that there will…