The Texas Ethics Commission has proposed a new rule that allows government officials and politicians to accept Bitcoin (BTC) and cryptocurrency contributions.
The proposal was sent to the Texas Secretary of State, who sought to clarify and clarify the reporting requirements for political contributions made with cryptocurrencies. By deposit:
The new rule allows candidates, officials and political committees to accept cryptocurrency. It does not differentiate between any kind of cryptocurrency such as bitcoin. ”
If approved, cryptocurrency donations and contributions should be reported in kind or by investment, 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) handle cryptocurrency contributions.”
The proposal clearly states that political and government campaigns will not be able to use cryptocurrency directly and will require the cryptocurrency to be liquidated before the proceeds are used. However, the committee stated:
“The rule does not require candidates to liquidate their cryptocurrencies in a timely manner.”
In addition, the proposal plans to counter the high volatility of cryptocurrencies by instructing mentors to report the value of any cryptocurrency accepted as fair market value at the time of receipt.
The legality of each cryptocurrency deposit will be determined by confirmation that the depositor is not a foreign citizen. According to the filing, a new rule was proposed pursuant to Section 5771062 of the Texas Government Act, which empowers the Commission to make rules for the application of Section 15 of the Election Act.
Related Topics: Cryptocurrencies Are Now Recognized Under Texas Commercial Law
The state of Texas recently approved two household bills that are driving the adoption of blockchain cryptocurrencies.
According to a Cointelegraph report, Texas House Acts 1576 and 4474 were signed by Governor Greg Abbott, who set up a blockchain working group and amended the state’s Unified Commercial Code to recognize cryptocurrencies in line with commercial law.