With political insults flying freely, it would be easy to miss this quirky bit of political news – Oregon may allow candidates to accept cryptocurrency campaign contributions.
Oregon Secretary of State Dennis Richardson is proposing a rule that he says mirrors a 2014 Federal Elections Commissions rule permitting Bitcoin contributions. Richardson said cryptocurrency donations to candidates would be treated the same as stock contributions and, in his view, would expand participation in state elections. “Cryptocurrency is here to stay,” Richardson said.
While cryptocurrency has gained in popularity and use, but at least one former FEC commissioner questions whether they meet transparency laws intended to reveal the source of political contributions. While cryptocurrency transactions are tracked, identities in transactions aren’t. Oregon Treasurer Tobias Read echoes that concern, warning straw donors could be employed to cloak actual donors because of “cryptocurrency’s secretive nature.”
Cryptocurrency exists digitally, not physically. It is encrypted for security reasons, but not issued by any governmental authority. Its value is determined organically and can fluctuate. Under Richardson’s proposed rule, a candidate receiving a cryptocurrency contribution would be required to report at its market value the day of receipt. If the cryptocurrency rises in value, the candidate must report the gain. Similarly, if the currency loses value, the candidate must list the loss as if it were an expenditure.
The FEC rule allows cryptocurrency contributions up to $100 in federal elections. However, Oregon doesn’t have limitations on contribution amounts, which is potentially significant since the value of a Bitcoin is hovering around $6,000. It has ranged as high as $20,000. Despite limits, the Register-Guard said one California Democratic House candidate reported nearly $200,000 in cryptocurrency contributions.
The public will have a chance to comment July 23 in Salem on the proposed state rule allowing cryptocurrency contributions.