By
Chimamanda U. Martha
April 25th, 2024
The bill is set for an introduction to the lower house when it convenes on March 14 for a regular plenary session.
Louisiana state rep, Mark Wright, is proposing a bill to legalize crypto donations to political campaigns. If ratified, the bill will provide a legal framework guiding the receipt and use of cryptocurrency contributions to political entities.
The bill will amend and reenact existing laws guiding such donations and lay down a procedure for contributing, using, reporting, and accepting crypto donations generally. The bill will treat crypto assets as ‘in-kind’ donations and will thus require political candidates and office-holders to accept the assets and convert them into fiat before use.
Apart from defining the cryptocurrency, the bill also proposes maintaining proper records for all cryptocurrency donations. Beneficiaries of the donation must ensure donations happen within a legally accepted framework. This will require recording data about names, addresses, current employer, and affirmation that the owner of the asset is also the sender.
Though in its early stages, the bill is set for an introduction to the lower house when it convenes on March 14 for a regular plenary session. If it scales, it will then be sent to Louisiana Senate for additional input and ratification.
Louisiana and Other State Crypto Legislature
This is not the first time a bill related to cryptocurrencies will be introduced to the house. In 2020, it became the second state after New York to pass the Virtual Currency Business Act. As a result of the Act, crypto companies must obtain a license to operate in the state.
Later in 2021, the state legislature acknowledged BTC and its creator for their contribution to economic security. Among other states, Virginia ratified a bill to allow banks to take on custodial services for cryptocurrencies.
In February, Colorado announced it was ready to begin accepting Bitcoin and other altcoins for tax payments. Oklahoma went one step further seeking approval to allow crypto use in government transactions. Also, Wyoming approved the formation of crypto-focused institutions.
According to the National Conference of State Legislatures, as of 2021, Louisiana and 32 other states have introduced crypto-related legislation.
More Regulation Cries Federal Reserve
While state legislatures seem to be embracing cryptocurrencies, there are calls for more regulation from US regulators.
Just last week, Federal Reserve Chairman drew attention to the need for Congressional action on digital finance including cryptocurrencies. This was after he was asked if Russia could use cryptocurrencies to bypass international sanctions since its invasion of Ukraine.