Election & Bitcoin Rules

Note from the CEO: Oh boy, a perfectly timed article………assuming you HAVE heard there is an presidential election coming up. The FEC (Federal Election Commission) considering amending how bitcoins donations to political donations are classifed. (Note: bet you didn’t know you could donate up to $100 in bitcoins to candidates. Don’t feel bad, FintekNews didn’t either). Soooooooo, bitcoins/cryptocurrencies, dark web, Tor, anonymous doners and hard to track. Wonder which candidate will “encourage” the FEC to approve? Just thinking.

“Amidst the backdrop of a chaotic presidential election between Democrat Hillary Clinton and Republican Donald Trump, the US Federal Election Commission is quietly debating whether to reclassify how it treats bitcoin donations.

In May 2014, the FEC greenlit bitcoin donations to political campaigns, classifying them as an “in-kind” contribution in response to a request by a Make Your Laws PAC, a North Carolina organization. At the time, the agency put a cap of $100 per contributor, an amount that corresponds to whatever the current market price is at the time of the donation.

By ruling that bitcoin donations are in-kind contributions, the FEC placed the digital currency in the same category of stocks or other kinds of valuable assets. This was largely driven by the fact that bitcoins can’t be deposited into a bank account. Instead, a campaign can hold on to any bitcoins received until it decide to sell them, at which time a 10-day deadline for depositing the funds kicks in.”

Read Full Article at CoinDesk