The Texas Ethics Committee proposed a new dominion that permits government officials and politicians to accept Bitcoin (BTC) and cryptocurrency contributions.

The proposal was filed with the Texas Secretary of State, which sought to address and analyze the reporting requirements of political contributions fabricated with cryptocurrencies. According to the filing:

"The new rule permits candidates, officeholders, and political committees to accept cryptocurrency. It does non distinguish between whatsoever types of cryptocurrencies, like Bitcoin."

If canonical, cryptocurrency donations and contributions will need to be reported every bit in-kind contributions or equally investments, not currency. Co-ordinate to the committee, this move "mirrors the manner the Federal Election Committee (FEC), Internal Revenue Service (IRS) and Securities and Exchange Commission (SEC) treat cryptocurrency contributions."

The proposal clarifies that political and governmental campaigns will not be permitted to spend cryptocurrencies directly and will be required to liquidate cryptocurrencies before spending the proceeds. However, the commission mentioned:

"The rule would non require filers to liquidate their cryptocurrency holdings inside whatever particular timeframe."

In addition, the proposal plans to counter the high volatility of cryptocurrencies by directing filers to study the value of any accepted cryptocurrency every bit the fair marketplace value at the time of receipt.

The legality of every crypto contribution will exist determined by an affirmation that the contributor is not a foreign national. According to the filing, the new rule is proposed under Texas Regime Code §571.062, which authorizes the commission to adopt rules to administer Title 15 of the Election Code.

Related: Cryptocurrencies now recognized under commercial law in Texas

The land of Texas recently approved 2 House bills that promote cryptocurrency and blockchain adoption.

As Cointelegraph reported, Texas House Bills 1576 and 4474 were signed into law by Governor Greg Abbott, which let the establishment of a blockchain working grouping and amend the state's Compatible Commercial Lawmaking to recognize cryptocurrencies nether commercial police.