A proposed bill in Louisiana’s House of Representatives seeks to formally allow political campaigns to receive donations in cryptocurrency. The bill, introduced on Feb. 25, will be presented before the house during its upcoming regular session.
The bill is sponsored by Representative Mark Wright, and proposes that cryptocurrency contributions may be accepted by candidates, officeholders and political committees. Candidates will also be required to record and disclose any crypto donations.
But the bill also states that candidates will not be able to transact directly in crypto, and only by converting it to fiat. Essentially, the bill seeks to recognize crypto donations as a form of “in-kind” contribution, ie, a good or service other than money. At a federal level, crypto is not recognized as legal tender.
The bill also seeks to define crypto as a virtual currency under Louisiana law.
Still, the bill is in a very early stage. It will be presented before the lower house when its regular session starts on March 14. If it gains a majority vote there, it will be passed ahead to the Louisiana Senate, where it will face further scrutiny.
U.S. states adopt crypto
Several U.S. states have passed laws adopting crypto in some form, hoping to capitalize on a boom in the market over the past few years. Most recently, Virginia approved a law that will allow banks to offer crypto custody services.
Last month, Colorado said it would begin accepting Bitcoin and other popular altcoins as tax payments. Wyoming has allowed the creation of crypto-focused banks, while Oklahoma introduced legislation that will allow crypto to be used to transact in government agencies.
Data from the National Conference of State Legislatures showed that 33 states had introduced legislation involving crypto in 2021.
Louisiana itself had passed a Virtual Currency Business Act in 2020, becoming the second state after New York requiring crypto firms to obtain a license to operate in the state.
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Source: https://coingape.com/breaking-louisiana-state-proposes-bill-to-allow-crypto-donations-for-political-campaigns/