Colorado Proposes Accepting Political Donations In Cryptocurrency

The Office of the Colorado Secretary of State is proposing rules to allow political candidates to accept cryptocurrency for campaign contributions.

The proposal, issued last week, is part of the draft rules concerning the “Campaign and Political Finance.” The proposed rules would allow committees to accept contributions in the form of cryptocurrency up to the acceptable limit for a cash or coin campaign 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,” the proposed guidance states. “A committee may not keep anonymous contributions of $20 or more. A committee must donate an anonymous contribution of $20 or more to a 12 charitable organization recognized by the Internal Revenue Service, or transmit the 13 contribution to the State Treasurer within 30 days after receipt.”

Colorado residents can provide feedback on the proposed rules until 5:00 pm local time on May 23. If approved, Colorado would become the latest state to permit donations to political campaigns in cryptocurrency.

In 2014, the Federal Election Commission – which oversees national-level campaigns – approved bitcoin contributions, ruling they should be treated as “in-kind donations.”