• The Texas Ethics Commission has proposed a crypto-friendly law

  • Yesterday, the Texas Ethics Commission proposed an exclusive framework for Cryptocurrency contributions, in order to address and clarify the reporting requirements of political contributions made with cryptocurrencies such as Bitcoin. The proposal mirrored the treatment of cryptocurrency contributions and holdings as investments rather than currency by the Federal Election Commission (FEC) and several other state commissions such as the IRS and SEC. Authorities will be able to accept cryptocurrency payments under the new rule. The decentralized currency, on the other hand, will only be reported as in-kind contributions.

    “The new rule allows candidates, elected officials, and political committees to accept cryptocurrency.” It distinguishes between various types of cryptocurrencies, such as Bitcoin. Filers would be required to report cryptocurrency as in-kind contributions under the rule. Campaigns would be required to liquidate any cryptocurrency proceeds before spending them; they would not be permitted to use cryptocurrency as a currency.”

    Furthermore, if implemented, the new rule will address the infamous issue of cryptocurrency volatility by instructing filers on how to report the value of cryptocurrency contributions. Filers will be required to report the fair market value of any accepted cryptocurrency at the time of receipt. Despite the fact that the rule does not impose a liquidation deadline for digital currency funds, filers must determine the legality of any accepted cryptocurrency contribution and obtain certain information from the contributor, including an affirmation that the contributor is not a foreign national.

    Pro-crypto statements by Crypto Mom

    While the US government remains divided on the cryptocurrency debate, more supporters are joining the pro-crypto adoption list. Earlier this week, at the Wall Street Journal’s Tech Live conference, crypto mom, Commissioner Hester Peirce, came to the virtual currency’s aid, recommending that the SEC begin working with crypto businesses to develop a reasonable framework for securities laws.

    The Commissioner stated that it is past time for regulators to accept the inescapable growth of the decentralized sphere and begin collaborating with crypto firms to develop a better policy framework, which will lead to a brighter future for the nation’s financial markets.

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