The United Kingdom is not the only country opposing cryptocurrency donations to political parties. In 2022, Ireland banned all cryptocurrency contributions to political entities to protect its democracy from the threat of foreign interference. The amendment also addressed misinformation, transparency requirements for political parties, and the rules governing foreign donations.
In the U.S., several states, such as Oregon, Michigan, and North Carolina, have banned cryptocurrency donations to political campaigns due to concerns about traceability, transparency, and compliance with election funding laws. In 2018, California banned cryptocurrency donations, but this legislation was repealed in 2022.
El Salvador, a country that has adopted Bitcoin perhaps more than any other, does not prohibit cryptocurrency donations. However, in 2022, Acción Ciudadana warned about the lack of oversight in political funding in El Salvador, where the legality of Bitcoin could leave the door open for organized crime or foreign actors to influence elections anonymously.
As cryptocurrency donations increase globally, lawmakers and politicians continue to grapple with regulatory gaps that expose digital assets. In the 2024 U.S. elections alone, cryptocurrency companies spent a total of $134 million to support pro-cryptocurrency candidates, generating both momentum and concern.
