Kansas state lawmakers look to cap crypto political donations at $100

Lawmakers in the Kansas House of Representatives have introduced a bill proposing to amend the legislature’s rules on political campaign donations.

According to the bill, no person would be allowed to make or accept crypto contributions of more than $100 for any political candidate in the state’s primary or general election. For donations under $100, the receiver would need to “immediately convert” the crypto to U.S. dollars, not use the crypto for expenditures, and not HODL the funds.

The proposed bill included provisions that seemed to be aimed at mitigating foreign contributions to elections in Kansas, by requiring personal information from those sending crypto — including “that they are not a foreign national”. Crypto campaign contributors would also have to send the funds through a U.S.-based exchange with certain Know Your Customer requirements.

The $100 cap would be based on the “fair market value” of the crypto at the time the contribution was received. Kansas lawmakers first introduced the bill to the House on Jan. 25, later referring the legislation to the Committee on Elections.

Kansas Governmental Ethics Commission said in 2017 that cryptocurrency contributions were “too secretive”, specifically referring to Bitcoin (BTC). The state of California imposed a ban on political campaign donations in 2018, but changed course in July 2022 — also capping contributions at $100.

Related: FTX seeks to claw back political donations by the end of February

Though not a major election year in the United States, crypto continues to be an issue for lawmakers at the federal and state levels. In April 2022, Ireland’s government issued a ban on crypto political donations, citing concerns about foreign interference in the country’s elections.

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