Regulation News

TEC proposes law to include cryptocurrency donations in contributions and investments

TL;DR Breakdown

• The state governor will create a law based on the SEC cryptocurrency regulations.
• Texas has become the leading state accepting crypto commerce.

Recently the Texas Ethics Commission spoke about the contributions and donations in cryptocurrencies that have been very frequent today. The agency seeks to include a condition for crypto, so these contributions are legal.

If the law that supports donations in cryptocurrency is approved, all this income must be shown as an investment or contribution for a specific area. In this way, the committee in the State of Texas would be enabling the contributions in cryptos complying with the laws of the SEC, the IRS, and the FEC.

Texas Ethics Commission seeks to enable strategic contributions in crypto

Crypto contributions in the political arena have reportedly been going for now, but not legally as the Texas Ethics Commission expects. Therefore, the agency seeks to develop a law approved by national regulators such as the SEC so officials, committees, and candidates can accept cryptocurrencies.

This rule will not force donors to send their money in cryptos but is optional, as indicated by the committee.

This law shows that all government and political work will not use cryptocurrency directly but must be exchanged for fiat currency. The committee also clarifies that donors will need to report the money they have sent on the spot to avoid the volatility existing in the crypto market. In this way, control would be kept with crypto transactions.

For this movement in crypto to be legalized, each donor will be a national and not a foreign inhabitant. The commission focuses on the reform through law 571.062 that allows the body in Texas to take measures to manage certificate number 15 of the voter manual.

Texas looking to adopt cryptocurrencies

As the second most populous state in the United States of America after California, Texas has been making laws for the crypto trade. The state recently authorized two plans to use the cryptocurrency-based Blockchain network, making it one of the most receptive regions towards this new financial market.

However, the committee did not stop there because it is now looking for a law that accepts contributions in cryptos such as Bitcoin. According to local media reports, behind this legal plan is Greg Abbott, the state governor. The project seeks to address the crypto market to be used in commercial areas with legality.

As legal disputes continue in Texas, cryptocurrency trading is on the rise, demonstrating its great potential. Bitcoin, for example, trades above $61000 with a slight loss of 0.41 percent of its value in 24 hours. But Ethereum continues on its bullish streak with a value of $4,082, maintaining its rise of 2.45 percent in 24 hours.

Both cryptocurrencies are expected to reach new all-time highs in the last week of October, considering the burgeoning wave of adoptions.

This post was last modified on October 23, 2021 7:06 pm

Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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