Lawmakers in the Kansas House of Representatives have introduced a bill proposing to amend legislative rules on political campaign contributions.
According to the bill, no person will be allowed to make or receive crypto donations of more than $100 to a political candidate in a state primary or general election. For donations under $100, the recipient must “directly convert” the crypto to US dollars, not use the crypto for expenditures, and not HODL the funds.
The proposed bill includes a provision that appears to be aimed at reducing foreign contributions to elections in Kansas, by requiring personal information from crypto senders – including “those who are not foreign nationals”. Crypto campaign contributors must also send funds through a US-based exchange with certain Know Your Customer requirements.
The $100 cap will be based on the “fair market value” of the crypto at the time the contribution is received. Kansas lawmakers first introduced the bill to the House on January 25, later referring the legislation to the Election Committee.
The Kansas Government Ethics Commission said in 2017 that cryptocurrency contributions are “very secret”, specifically referring to Bitcoin (BTC). The state of California banned political campaign contributions in 2018, but reversed course in July 2022 – also limiting contributions to $100.
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Although it is not a primary election year in the United States, crypto continues to be an issue for lawmakers at the federal and state levels. In April 2022, the Irish government issued a ban on crypto political donations, citing concerns about foreign interference in the country’s elections.