The political candidates in US can accept virtual currency donations in form of Bitcoin, as voted by the Federal Election Commission on Thursday, reported New York Times. The decision was taken in lieu of the request from the politicl action committee.
The advisory defined Bitcoins as “money or anything of value” — in essence, cash or an in-kind contribution, under the Federal Election Campaign Act of 1971.
Initially, the donations are imposed with a cap at a cash equivalent of USD 100 per person per cycle. The value will be determined at the time of donation and a complete record of donator’s name, address and employer has to be maintained.
The committees will have to power to decide when to liquidate the Bitcoin investments. However, it is must to convert it into US dollars before depositing in the campaign account. Also, bitcoins are not allowed to use for purchasing campaign goods and services, as stated in a Reuters’ post.
The announcement drew mixed reaction from the masses as well as dignitaries of the political world. Here are a few tweets to showcase some thoughts:
I wish I could bet on a distributed Intrade powered by external state Bitcoin contracts happening before the 2014 US midterms elections.
— Dan Romero (@dwr) April 14, 2014
— Tomos (@PTomos) November 27, 2013
— Ken Feltman (@KenFeltman) November 27, 2013
Recently, The U.S. Securities and Exchange Commission also released a report stating that Bitcoins lack trust and credibility. In this case, how fruitful this step would be for the US political parties in the upcoming elections, only time would tell.