Rules

PROPOSED RULES

At its December 2021, meeting, the Texas Ethics Commission voted to propose the following new rule: §22.37. The text of the proposed new rule is located below.

§22.37. Cryptocurrency Contributions.
Text of Proposed Rule

§22.37. Adjustments to Reporting Thresholds.
Text of Proposed Rule

The proposed new language is indicated by underlined text.

Chapter 22. RESTRICTIONS ON CONTRIBUTIONS AND EXPENDITURES

§22.37. Virtual Currency Contributions

(a) Candidates, officeholders, political committees, and legislative caucuses may accept virtual currency contributions.

(b) Virtual currency contributions are considered “in-kind” contributions.

(c) A candidate, officeholder, or political committee must report a gain from the sale of virtual currency contributions on the appropriate schedule if the gain exceeds the reporting threshold set by Section 254.031(9) of the Election Code and amended by Commission Rule 18.31 (relating to Adjustments to Reporting Thresholds).

(d) The value of a virtual currency contribution is the fair market value of the virtual currency upon receipt.

(e) A candidate, officeholder, political committee, or caucus who accepts virtual currency contributions has the obligation to determine the legality of the virtual currency contributions. For a virtual currency contribution to be legal and eligible, a candidate, officeholder, political committee, or caucus must obtain the following information before accepting the contribution:

(1) The contributor’s full name;

(2) The contributor’s physical address;

(3) The contributor’s current employer;

(4) An affirmation that the contributor is in-fact the owner of the virtual currency being donated;

(5) An affirmation that the contributor is not a foreign national who has not been granted permanent residence in the United States; and

(6) An affirmation that the contributor is not a corporation or labor organization.