Senate hearing on SB 310 weighs allowing cryptocurrency campaign contributions with KYC and conversion rules
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Summary
At a Federal and State Affairs hearing on SB 310, committee staff briefed a proposal to permit cryptocurrency campaign contributions through U.S.-based, FinCEN-registered processors with KYC, require conversion to U.S. currency within three business days, value contributions at fair-market value, and prohibit campaigns from making expenditures in crypto; sponsors and members debated practical enforcement and treasurer burdens.
The Senate Federal and State Affairs committee heard testimony and extensive questions on Senate Bill 310, which would allow political campaigns to accept cryptocurrency contributions under specified safeguards.
Committee staff summarized the bill's key provisions: contributions must be made and received through U.S.-based payment processors registered with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network and using know-your-customer (KYC) procedures to identify and report contributors; contributions would be reported at the fair-market value when the payment processor obtains possession; campaigns would have three business days to convert the cryptocurrency into U.S. currency; and campaigns could not use cryptocurrency to make expenditures or hold crypto assets.
Senator Bowser, appearing as a conferee in support, said Kansas currently lacks crypto campaign-contribution law and argued the bill provides needed guardrails: "Wherever the law ends, tyranny and chaos begin," Bowser quoted, and urged the committee to lead on the issue. Bowser highlighted model legislation and noted several other states and the Federal Election Commission have addressed crypto donations.
Members raised technical questions and practical concerns: how valuation timing interacts with contribution limits when crypto appreciates or depreciates after receipt, how to return amounts that push a donor or campaign over statutory limits, the capacity of volunteer treasurers to monitor rapid price fluctuations and perform conversions, and whether existing electronic-payment options reduce the need to accept crypto. Jason explained that the reported value is the fair-market value on the day the payment processor takes possession and that enforcement would follow existing complaint-and-investigation mechanisms.
No committee vote on SB 310 was recorded; the hearing was closed and the committee indicated staff and legal counsel would further analyze questions raised before deciding on next steps.