The Federal Election Commission of the US May Decide on Bitcoin Donations for Political Campaigns

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The Federal Election Commission of the US May Decide on Bitcoin Donations for Political Campaigns
The Federal Election Commission of the US May Decide on Bitcoin Donations for Political Campaigns

The Federal Election Commission of the US May Decide on Bitcoin Donations for Political Campaigns

According to reports the Federal Election Commission is all set to decide its stand on Bitcoin donations for political campaigns. Apart from USD, donors may also pay in Bitcoin but subject to the rules set by the Fed which is going to determine rules governing donations made in Bitcoins; however, the guidelines will certainly be different for the virtual currency.

Libertarian Party Already Accepting Bitcoin Donations

America’s biggest third party has already announced that it is accepting donations in Bitcoin through bitpay.com. The observers of the political party had expected this gesture as Bitcoin is sometimes also called a “libertarian fantasy. Interestingly, it was not the Libertarian Party which started accepting Bitcoin first but a Republican New Hampshire state representative.

The Libertarian Party claims that as many Libertarians have begun using Bitcoin, a decentralized digital currency, it is better to equip the party to accept donations in the revolutionary currency. The party further admits that although BitPay cannot currently handle automatic recurring monthly donations, donors may still donate through this system as often as they wish.

Increasing Number of Individuals Trading in Bitcoin

In response to the query by attorneys for Conservative Action Fund PAC, if political candidates and outside groups are allowed to accept Bitcoin, the Federal Election Commission of the US may take a stand soon. According to the request when a large number of people have started using Bitcoin, it is imperative that the same should also be allowed for funding of politician campaigning.

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Additionally, when some political parties and several political leaders in the US are asking for Bitcoin donations, the Fed should take a stand on it. However, observers admit that a major issue for the FEC is whether Bitcoin donations to a candidate count as a monetary contribution or an in-kind contribution? The answer also depends on whether the FEC considers Bitcoin a currency or a good.

Will Anonymity be there if Bitcoin is accepted for Donations?

Observers admit that if the crypto-currency becomes mainstream for donations, it will not be anonymous as the federal law allows anonymous contributions of up to $50 and not more. Even under the existing law, almost all political parties and their candidates collect information from every donor irrespective of the amount donated.

Thus, if Bitcoin happens to be one of the currencies for political campaign donation, the donors’ identity will be known for all as the payment will be similar to ordinary payments wherein donors pay using Visa, MasterCard or other payment methods.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com