Bitcoin Donation Gets the Green Light from FEC
MAY 30, 2014 – STAMFORD, CT – The Federal Election Commission (FEC) on May 8, 2014, unanimously voted to allow political action committees (PACs) to accept Bitcoin donations, thereby acknowledging for the first time that digital currencies are a form of money.
The ruling is an acknowledgement of the currency’s growing popularity and donors and entities who want to participate can do so quite easily.
The FEC outlined the ways that the virtual currency can be used: a PAC can accept bitcoin donations, as well as purchase them, but it must sell its bitcoins and convert them into U.S. dollars before they are deposited into an official campaign account. Several politicians have already begun accepting Bitcoin.
The FEC also imposed several conditions. Among them: No anonymous bitcoin contributions will be allowed, campaign treasurers must scrutinize the donations for evidence of illegality, donations will be capped at a cash equivalent of $100 per person per cycle, with the value determined at the time of donation.
It should also be noted that the Commission did not approve the use of bitcoin to acquire goods and services.
Interested parties seeking to take advantage of this ruling without risking any adverse legal consequences can contact our Bitcoin attorneys Martin Mushkin, Joseph R. Sahid, and Joseph Taub at 212.779.4233. They can guide you through the process and help complete the required forms. Do not forego this opportunity.