On May of 2018, Colorado State Secretary Wayne Williams suggested a new political movement financing rules that now include a portion of the cryptocurrency content.
In May 2014, FEC presented a set of regulations that responded to a survey of a super PAC called “Make Your Laws.” The entity advocates to replace representative democracy with a comprehensive liquid democracy and asks for clarification if BTC donations can be accepted to finance political campaigns. During that time, Bitcoin was valued at about $400, and the altcoin was not actually regarded as an accepted means of financing campaigns. The FEC decided that Bitcoin can be accepted as an “in-kind donation” for campaigns. A kind of contribution that supplies the services and goods necessary for the organization’s functions, instead of using the funds to pay for those services and goods.
This means that the campaign cannot pay Bitcoin directly. It should be liquidated and then deposited into the campaign account. In terms of the donation ceiling, the percentage is dispersed throughout the party lines where the Democrats use a limit of $100, the Republicans at $2700 ceiling. Since the advisory opinion outlines recommendations rather than rules, GOP support for a larger cap had later inspired some politicians to allow themselves to go with the $2,700 limit. As the advisory watch laid out the suggestions instead of the guidelines, the Republican support for the larger limit afterward encouraged some political figures to let themselves take the $2,700 cap.
Given the somewhat uncertain federal rules, several state regulators had been struggling with related investigations after the distribution of the FEC regulation.
Politicians Who Advocated Crypto-Funded Campaigns
Below are a few of the most compelling American politicians at the state and federal levels who were transparent on their acceptance of crypto funds.
- Andrew Hemingway. Hemingway is a Republican candidate for the Governor of New Hampshire in 2014. He is the first in the office who has used cryptocurrency donations during his campaign.
- Austin Petersen. Petersen is from Missouri, a Republican candidate running for the Senate. He supports cryptocurrency based on his pro-market ideas.
- Brian Forde. Forde is set to become the political digital currency star. A Democrat seeking to be elected in the U.S. House representing California 45th Congressional District. He previously worked at MIT Media Lab as the head of digital currency. He also had been tech adviser under the administration of Obama.
- Dan Elder. Elder, Libertarian bidding for the House of Representatives for Missouri in 2016. He held the first campaign to be financed all by Bitcoin.
Other politicians who advocate cryptocurrency during their campaign includes Jared Polis, Greg Abbott, Patrick Nelson, and Rand Paul. Politics is full of inertia and devotedness to the status quo. Therefore, there is no doubt that cryptocurrency for political finance is not even close to popular taking.