With several recent setbacks, Bitcoin receives some nods of approval in recent unanimous vote
By Curt Cramer
Bitcoin received many doubts recently with several of the companies maintaining its infrastructure being hacked, but in a move that seemingly shows an increase in trust in the new digital currency, the Federal Election Commission unanimously approved being able to use Bitcoin as a campaign donation to Political Action Committees (PACs).
Conditions apply of course: no anonymous donations, and transactions must be investigated by campaign treasurers for any illegality issues. Bitcoins also must be sold for U.S dollars before being deposited into a campaign account.
FEC commissioner Ellen Weintraub noted that concerns of individuals on a previous vote to approve Bitcoin last fall were assuaged by the fact that the PAC seeking approval, known as the Make Your Laws group only wished for a maximum of $100 Bitcoin donations in its advisory opinion. With this the Commission is only legalizing a max of $100 donations under the current request by the PAC.
After the vote Weintraub stated, “The $100 limit was really important to us,” she said. “We have to balance a desire to accommodate innovation, which is a good thing, with a concern that we continue to protect transparency in the system and ensure that foreign money doesn’t seep in.”
Republican FEC Chairman Lee Goodman disagreed. In an article by the Washington Post yesterday , he is shown stating the advisory opinion treats Bitcoin donations as in-kind contributions — not official currency — meaning that the only limits that apply are the federal caps on all forms of accepted donations, famously changed in a recent Supreme Court ruling. Those limit individuals to giving $2,600 to a candidate per election and $5,000 to a political action committee. Individuals and corporations can give unlimited sums to SUPER PACs.
Recently the IRS also chimed in on Bitcoins, offering to tax Bitcoin as a property, not currency.
Even without approval of regulators, the Libertarian Party began accepting Bitcoin a year ago, since then collecting about $10,000, according to Executive Director Wes Benedict.
– Curt Cramer (@CurtisRemarc)
