A proposed bill in Louisiana’s House of Representatives would explicitly authorize political campaigns to accept cryptocurrency donations. The bill, which was introduced on February 25, will be heard by the House during its forthcoming regular session.
Representative Mark Wright is the bill’s sponsor, and it proposes that cryptocurrency contributions be accepted by candidates, officeholders, and political parties. Candidates would also be expected to keep track of and disclose any cryptocurrency donations.
However, the bill also specifies that candidates will only be able to transact with crypto after converting it to money. The bill essentially attempts to recognize cryptocurrency donations as a type of “in-kind” gift, i.e. a good or service other than money. Cryptocurrency is not recognized as legal tender at the government level.
In addition, the bill seeks to define cryptocurrency as a virtual currency under Louisiana law.
Nonetheless, the bill is in its early stages. It will be introduced to the lower house when its regular session begins on March 14. If it receives a majority vote there, it will be sent to the Louisiana Senate for additional consideration.
States in the United States have begun to use cryptocurrency.
Several states in the United States have approved legislation embracing cryptocurrency in some form, intending to gain on the market’s recent surge. Virginia has passed legislation allowing banks to provide crypto custody services.
Colorado said last month that it would begin taking Bitcoin and other popular altcoins as tax payments. Wyoming has approved the establishment of crypto-focused institutions, and Oklahoma has presented legislation that will allow cryptocurrency to be used in government transactions.
According to the National Conference of State Legislatures, 33 states have introduced crypto-related legislation in 2021.
Louisiana approved the Virtual Currency Business Act in 2020, making it the second state after New York to require crypto companies to seek a license to operate in the state.