The Kansas Legislature is considering introducing a new bill to limit the amount of cryptocurrency that can legally be donated. This cap would be determined based on the “fair market value” of the cryptocurrency at the time it was received by the payment processor.
Kansas State Tightens Crypto Donations
The measure also proposes imposing stricter crypto regulations regarding how virtual currencies can used by political campaigns in Kansas. According to the new laws, any cryptocurrency contributions received must be converted immediately into U.S. Dollars and then placed into the campaign account.

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The official document was four pages long.
A person may not accept or make any cryptocurrency contributions for any candidate or committee that exceed $100 for any one primary election or general election.
The guidelines state that political campaigns won’t be allowed to spend cryptocurrency or store it as an asset for a long time. There will be restrictions on the amount of donations and the use cryptocurrency. The rules also stipulate that political bodies will be required to exercise further diligence in the processing of cryptocurrency donations.
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Donations in cryptocurrency will only be accepted if they are made through a crypto payment processor based in the United States. The processing company should implement KYC procedures and procedures to “establish a reasonable belief” that the contributor’s true identity is known. These protocols will ensure that the party committee is always informed about who sent money and when.
Crypto in the U.S. Political Campaigns

Already, donations made using cryptocurrency have had a significant impact on the funding for U.S. elections. For the 2022 election cycle, there have been claims that $580,000 worth of cryptocurrency donations was received by political candidates. This number is likely to be lower than it should be, as some political action groups have failed to report the money they received to Federal Election Commission (FEC).
The legitimacy of donations made to crypto-related organizations and individuals is being investigated following the collapse of the FTX cryptocurrency exchange. The crypto news about the FTX collapse caused tremors in the sector. It was revealed that Sam Bankman-Fried, the founder of the company, had made substantial donations to American politicians.
Also read: Are these tokens the future of crypto gaming in 2023?

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