Ohio Election Commission to Provide Advice on Use of Bitcoin, Venmo by State Political Candidates

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COLUMBUS, Ohio – For the first time, the Ohio Election Commission set to offer official advice to state political candidates on how they should handle Bitcoin and Venmo, two increasingly common ways to transfer money.

Applicants who show up at local or state offices can accept Bitcoin and other cryptocurrencies, but must ensure whoever gave them is eligible to make campaign contributions in Ohio, according to a draft. legal opinion to be approved by the electoral commission on Thursday.

It should also be declared as an in-kind contribution – a term that applies to non-monetary contributions like food or services – but subject to maximum contribution limits as if it were a cash contribution, indicates the draft opinion. The value of the cryptocurrency, which can fluctuate wildly depending on market forces, would be calculated based on its value at the time the campaign received it. Individual Ohio donors can donate a maximum of $ 13,704 per year to a single state or state legislative candidate.

And when it comes to Venmo or other similar smartphone apps that can be used to send money directly to someone, applicants can use them, but must create a separate account to separate their personal funds. and countryside. There are similar rules for traditional bank accounts.

Phil Richter, the director of the Ohio Election Commission, said the opinions were issued primarily as a precautionary measure, in response to isolated questions. Campaign finance lawyers consulted by cleveland.com and The Plain Dealer also said they were unaware of the problem that frequently arises in Ohio.

Venmo didn’t really show up, and neither did Bitcoin, but the concern was that it would become more of a problem, and the best approach was to take a position now before we went too far, Richter said.

The Ohio Election Commission interprets state campaign finance law and also makes findings on potential violations, if necessary, flagging them for prosecution.

The Federal Election Commission, which interprets and enforces federal candidate campaign finance laws, first issued guidance regarding Bitcoin in 2014, at the time allowing candidates to accept up to $ 100 in digital currency of each donor. If Bitcoin were to rise in value – $ 100 in Bitcoin obtained in 2014 would be worth more than $ 15,000 today – the campaign could accept the profit, reporting it like any other investment.

The FEC also issued guidelines for the payment of political contributions by SMS in 2012, requiring campaigns to track contributions to report the credentials of donors of $ 200 or more, as long as that person provides their name, address. , his profession and the name of his employer.

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