In Brief:
- The Texas Ethics commission proposed a new rule that grants government authorities and lawmakers to accept bitcoin
- The proposal was filed with the Texas Secretary of State on 5 October 2021.
- The cryptocurrency donations should be reported as contributions or as investments, not currency
The Texas Ethics Commission proposed a new rule that grants government authorities and lawmakers to accept bitcoin and other cryptocurrency donations.
According to the proposal, “The new rule permits candidates, officeholders and political committees to accept cryptocurrency. It does not distinguish between types of cryptocurrencies, like bitcoin.” The proposal was filed with the Texas Secretary of State on 5 October 2021.
If this proposal is approved, then cryptocurrency donations and contributions should be reported as in-kind contributions or as investments, not currency. According to the Commission, this move “mirrors the way the Federal Election Commission(FEC), Internal Revenue Service(IRS), and Securities and Exchange Commission (SEC) treat cryptocurrency contributions.”
“The rule would not require filers to liquidate their cryptocurrency holdings within any particular timeframe,” according to the report. The new standard proposed under the Texas Government code §571.062, which authorizes the Commission to adopt rules to administer Title 15 of the Election Code. Texas Government code § 571.062 needs the commission to annually adjust reporting thresholds.
The Commission invites comments on the proposed new rules from any member of the public. Additionally, it also allows spoken comments to the commission.
