Senators amend bill to bar cryptocurrency and commodities as campaign contributions

Senate Bill 310, which originally would have allowed candidates to accept campaign contributions in convertible virtual currency, was amended in committee to prohibit accepting cryptocurrency, precious metals, securities or commodities as campaign contributions.

Jason, the committee adviser, summarized the original bill as an amendment to KSA 25‑41‑53 that would have required contributions in convertible virtual currency to be processed by a U.S.‑based payment processor registered with the Financial Crimes Enforcement Network, reported at fair market value when obtained and converted to U.S. currency within three business days. Committee members debated practical considerations raised during testimony: apps that instantly convert crypto to dollars, how to value donations, and whether such transactions would effectively be e‑funds.

Senator Francisco offered an amendment that would strike the bill’s permissive language and replace it with a prohibition: “No candidate or candidate committee shall accept any campaign contribution in the form of any cryptocurrency, precious metal, security, or commodity,” and added statutory definitions. Senators questioned whether that approach boxed the statute in but also noted definitions in the bill could help clarify the law. Senator Francisco moved the amendment and Senator Foskeeto seconded it. After a division vote to count hands, the amendment passed (5 in favor, 4 opposed).

Committee discussion emphasized that existing tools (instant‑conversion apps and payment processors) often convert noncash contributions to dollars at receipt, a point proponents of more permissive treatment raised. The amendment adopts a clear prohibition and is intended to remove ambiguity about fluctuating‑value donations. Further legislative work may be needed to address related statutory definitions and enforcement mechanics.