transparency

Candidates May Be Able to Accept Bitcoin Contributions

Secretary of State Dennis Richardson says allowing Oregon candidates to accept cryptocurrency contributions would be an innovative way to expand political participation. Others like Treasurer Tobias Read aren’t so sure as they worry about cryptocurrency’s “secretive nature” that could be used to cloak the identity of campaign contributors.

Secretary of State Dennis Richardson says allowing Oregon candidates to accept cryptocurrency contributions would be an innovative way to expand political participation. Others like Treasurer Tobias Read aren’t so sure as they worry about cryptocurrency’s “secretive nature” that could be used to cloak the identity of campaign contributors.

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.

 

The Good and the Ugly Session

End-of-session reports by lawmakers to their constituents often leave a lot to be desired — and to the imagination. However, reports by House Speaker Tina Kotek, D-Portland, and freshman Rep. John Davis, R-Wilsonville, offered lucid, contrasting views on how the short 2014 session went.

One of the biggest contrasting viewpoints was on the session itself.

"We now have annual legislative sessions because Oregonians shouldn't have to wait a year and a half to have urgent issues addressed," Kotek wrote in her newsletter.

In a piece appearing in the Wilsonville Spokesman and sent to his constituents, Davis said, "In 2010, when Oregon voters supported Measure 71 to amend our Constitution to add annual sessions, we were told these short, even-year meetings would focus on budget stability and transparency.... This year, unfortunately, Oregonians experienced 32 days of politics and one day of budget review."

"The complexity of the state budget," Kotek said, "requires annual updates to respond to changing revenue forecasts or emerging priorities." She said budget writers were able to increase the state's reserve funds while boosting assistance for seniors, low-income families and the mentally ill.