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Colorado Proposes Rule To Allow Political Donations In Cryptos

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The western U.S. State of Colorado has proposed rules to allow political candidates to accept donations for campaigns in bitcoin and other cryptocurrencies.

A working draft of proposed rules concerning the "Campaign and Political Finance" was put up for feedback until May 23 by the Office of the Colorado Secretary of State. The Secretary of State Wayne Williams will issue a formal notice of rulemaking after considering the feedbacks.

The new rule 10.7 proposed concerning contributions says, "A committee may accept contributions in cryptocurrency, up to the acceptable limit for a cash or coin contribution. The amount of the contribution is the value of the cryptocurrency at the time of the contribution. The committee must report any gain or loss after the contribution as other income or receipts."

Cryptocurrencies have played a significant role in funding political campaigns in the United States after the Federal Election Commission gave individuals the go-ahead to contribute to electoral campaigns via virtual currency in 2014.

Candidates have already started accepting contributions to their election campaign fund in cryptocurrency.

Libertarian-turned-Republican Senate candidate Austin Petersen announced in mid-February that he received a total of 24 cryptocurrency donations. The donations were worth $9,700, the largest of which was for 0.284 Bitcoin, or $4,500.

Coloradan Democrat Jared Polis in 2014 and Republican Senator Rand Paul during his 2016 presidential run had accepted bitcoin donations for their campaign.

New Hampshire was reportedly the first U.S. State to start allowing candidates to accept donations of cryptocurrency in 2014.

Meanwhile, U.S. Representative Jared Polis received about $2,000 worth of bitcoin for his 2014 re-election campaign. He is now a candidate for governor, and is said to be the first member of Congress to accept bitcoin.

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