SonicSpike writes "Political campaigns will be allowed to accept — but not spend — the digital currency Bitcoin, under a proposed federal rule released Thursday. The Federal Election Commission draft would require campaigns to first convert any Bitcoins collected as donation to dollars.
According to the proposal, the currency will count as an “in-kind” contribution to a campaign — like a stock or bond. The FEC will not consider them currency. Campaigns are permitted to accept non-monetary contributions like stocks, private stocks, commodities, and equipment— but must list their value in dollars on campaign finance reports.
Attorneys for Conservative Action Fund PAC asked the agency in September to decide if and how political candidates and outside groups are allowed to use the digital currency, in addition to U.S. dollars. “As increasing numbers of individuals trade in Bitcoin, political parties and candidates also wish to accept and spend this new currency,” Dan Backer of DB Capitol Strategies wrote in the request on behalf of the Fund. The request asked the FEC 24 technical questions regarding the use of Bitcoin as political contributions."
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