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A legislative proposal in the state of Kansas, United States, required politicians to promptly convert cryptocurrency donations into U.S. dollars, leaving no room for holding or using the funds. This bill, known as HB 2167, was introduced by lawmakers in the Kansas House of Representatives on January 25, 2023. As previously reported by Cointelegraph, the legislation aimed to enforce a $100 limit on all political donations for the state’s primary and general elections. Furthermore, it mandated politicians to convert any cryptocurrency contributions to U.S. dollars without allowing for any expenditure or retention of the digital assets.
Shortly after its introduction, the bill was referred to the House Committee on Elections, which released a committee report on February 22, 2023, “recommending the bill’s passage,” accompanied by specific amendments.
However, the bill was subsequently removed from the legislative calendar due to non-compliance with the state’s Rule 1507, which imposes strict deadlines on certain bills. The official title of HB 2167 read as follows:
“Amending the Campaign Finance Act to regulate and restrict the use of cryptocurrency and to prohibit the use of any political funds collected by a candidate or candidate committee for a federal office candidate.”
This legislative move specifically targeted political donations in Bitcoin. In 2017, the Kansas Governmental Ethics Commission had described cryptocurrency contributions as “excessively secretive.” It’s worth noting that Californian authorities initially banned cryptocurrency donations in politics back in 2018 but later reversed this decision in July 2022.
Meanwhile, nine U.S. Senators lent their support to Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act. Senator Warren’s official Senate webpage identified Democratic Party Senators Gary Peters, Dick Durbin, Tina Smith, Jeanne Shaheen, Bob Casey, Richard Blumenthal, Michael Bennet, and Catherine Cortez Masto, along with independent Senator Angus King, as members of the bipartisan coalition backing the bill.
Senator Warren expressed her satisfaction with the growing coalition, emphasizing, “Our expanding coalition demonstrates that Congress is prepared to take action. Our bipartisan bill is the most rigorous proposal available for curbing illicit use of cryptocurrencies and providing regulators with enhanced tools to combat such activities.”
