Michigan Bans Crypto Donations for Political Campaigns
Michigan Bans Crypto Donations – Michigan’s campaign finance board has said that campaign donations made using cryptocurrency are not allowed in the state.
In a letter dated November 8th, addressed to Michigan state legislature candidate William Baker, who earlier made an inquiry on the issue before losing in the recent mid-term elections, the Michigan Department of State informed Baker that according to the Michigan Campaign Finance Act (MCFA) and the Administrative Procedures Act (APA), campaign donations cannot be made in bitcoin and other cryptocurrencies. They cited their frequently fluctuating values as the reason.
In the letter signed by Ruth Johnson, Michigan Secretary of State, it was stated that campaign donations may not be made in bitcoin and other cryptocurrencies because, by nature, the value of these crypto assets fluctuate and their volatility makes it impossible to assign an exact value to them in administrative terms. Where it is not possible to ascertain the exact value of a contribution, such a contribution becomes invalid in the eyes of law.
An excerpt from the letter reads:
“In the context of a contribution under the MCFA, an ascertainable monetary value is one that is exact, precise, and certain or can be determined with certainty. Where it cannot be determined the exact or precise dollar amount for a contribution made with Bitcoin at the time it is given, there can be no ascertainable monetary value.”