Skip to Content
Uncategorized

Should Politicians Accept Campaign Contributions in Bitcoin?

October 31, 2017

State and local political campaigns should not accept Bitcoin contributions because it is too difficult to trace payments, says a new report issued by the state of Kansas—but that doesn't square with current federal guidance on the issue. The view of the Federal Election Commission, which released guidelines on the topic (PDF) in 2014, is that it's fine for federal campaigns to buy bitcoins and accept them as contributions under certain conditions.

This piece first appeared in our new twice-weekly newsletter, Chain Letter, which covers the world of blockchain and cryptocurrencies. Sign up here – it’s free!

In fact, even though a number of politicians are already proudly accepting Bitcoin, the ideal way to integrate cryptocurrency into campaign finance is far from clear.

According to the FEC, campaigns can accept individual Bitcoin contributions of up to $100, determined by the market value at the time of the contribution. It also says that campaigns have “obligations to return or refund a Bitcoin contribution that is from a prohibited source, exceeds the contributor’s contribution limit, or is otherwise not legal.”

At this point, the issue of Bitcoin campaign contributions still raises many questions. Who determines the authoritative market value? Why the $100 limit? How should candidates report gains or losses? Should they be required to use software tools like those used by Bitcoin exchanges to comply with anti-money-laundering laws? (As I recently reported, these tools are making it easier to track criminal activity. Check out “Criminals Thought Bitcoin Was the Perfect Hiding Place, but They Thought Wrong.”)

There’s a chance we’ll get some answers soon. Last November, the FEC said (PDF) it was considering updating the way it regulates contributions “made by electronic means,” including Bitcoin.

Deep Dive

Uncategorized

Our best illustrations of 2022

Our artists’ thought-provoking, playful creations bring our stories to life, often saying more with an image than words ever could.

How CRISPR is making farmed animals bigger, stronger, and healthier

These gene-edited fish, pigs, and other animals could soon be on the menu.

The Download: the Saudi sci-fi megacity, and sleeping babies’ brains

This is today’s edition of The Download, our weekday newsletter that provides a daily dose of what’s going on in the world of technology. These exclusive satellite images show Saudi Arabia’s sci-fi megacity is well underway In early 2021, Crown Prince Mohammed bin Salman of Saudi Arabia announced The Line: a “civilizational revolution” that would house up…

10 Breakthrough Technologies 2023

Every year, we pick the 10 technologies that matter the most right now. We look for advances that will have a big impact on our lives and break down why they matter.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.