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Thursday, May 15, 2014

Federal Election Commission Says, Bitcoiners Can Buy Politicians Just Like Those Who Use Dollars



Federal Election Commission Says, Bitcoiners Can Buy Politicians Just Like Those Who Use Dollars






Bitcoin Legitimacy Growing

 What the decision does for Bitcoin is that it legitimizes it even further and also makes it quite difficult for the government or anyone for that matter, to discuss further, the legality of Bitcoin. Now that it can be used to fund campaigns, it has been given the okay by the US Government. It also allows the Bitcoin community to purchase their politicians just like everyone else. Honestly, I’d rather see Bitcoin spent in other areas, but this decision is a good one for the Bitcoin community and Bitcoin in general.





More than anything, what this decision does is it solidifies the fact that spending one’s Bitcoin is a First Amendment and politically protected activity. It has been regulated by the Federal Election Commission and slowly but surely we see Bitcoin acceptance growing now to even a political level. Imagine that they could use the Blockchain to provide for transparency in political campaign contributions far better than they can now in the traditional banking system. Further discussion is needed about the $100 donation limit but this does not appear to be much of an issue as this is the current cash limit. 




As far as the anonymity issue, it is unclear exactly how they plan to enforce these laws or provisions. If you are trying to trace payments against people who are working hard and have a significant financial incentive to not be traced, that will indeed be difficult. Look for Coinbase or another online payment processor to release a system soon that will help open the transparency of those who donate, help cap the amount donated, and also turn the Bitcoin immediately to cash so that these politicians can use it on their campaigning efforts.



USA Today Uses The Bitcoin Logo To Celebrate FEC Decision





The USA Today, the second largest newspaper in the United States celebrated the news that Bitcoin is now approved for political campaign contributions by adding a Bitcoin to its own logo. Not only was the logo from the online edition changed but so too was the logo of the paper edition which is the widest circulated print newspaper in the United States. Currently distributed in all fifty states, The USA Today distributes papers to the District of Columbia, Puerto Rico, Guam, Canada and the United Kingdom. The newspaper has its headquarters in the Tysons Corner area of Fairfax County, Virginia, and something tells me that someone at the USA Today must like Bitcoin. USA Today sells for $2.00 USD at newsstands and is often found free at hotels and airports that distribute it to their customers. Auditmedia.com shows the USA Today distribution stats for the last 6 months of 2012 as having:

 Circulation of 1.7 million print and digital editions and a
Combined website reach of 32.2 million unique visitors & 594 million page views.



When clicked, the logo links to this article from the USA Today from May 9, 2014.  The unanimous FEC decision to allow political committees to accept Bitcoin donations up to $100 worth was reported on by CCN as soon as the news broke.


All in all, this is a great decision for Bitcoin. Anytime you can see the big Bitcoin logo displayed across the front page of a newspaper that is seen by over 7 million readers daily, that is certainly a step in the right direction in regards to the continued acceptance of this quickly growing cryptocurrency.

From its taxation laws and now to its use in political campaigning, Bitcoin is certainly becoming more a part of what we do in the USA Today.





The campaign coffer of Rep. Jared Polis, D-Colo., is steadily filling with invisible money.

 As of Monday night, Polis had received $1,500 in Bitcoin that 39 donors together contributed to his campaign since the Federal Election Commission on Thursday allowed political candidates to accept them in limited amounts, campaign manager Lisa Kaufmann confirmed to the Center for Public Integrity.

 His website homepage now shouts in bold red letters: "Now Accepting Bitcoins!"

 Polis became the first federal official to accept Bitcoin after the FEC's less-than-crystal-clear decision, which, in part, permits candidates and political committees to accept up to $100 in Bitcoin from an individual per election. It did not rule one way or another on whether candidates and committees may accept the Bitcoin equivalent of the $2,600-per-election federal donation limit for individuals.

 Polis' Bitcoin contributions could be a boon or bust for him. That's because the Bitcoin market is notoriously volatile.

 Consider that in late 2011, a single bitcoin traded for about $2. By late 2013, its value exceeded $1,100. Today, a bitcoin goes for about $435.

 Say, a month or year from now, the Bitcoin market crashes.

 The value of Polis' Bitcoin contributions would plummet accordingly, leaving him with less spending power than if his Bitcoin contributions had been made in cash.

 But if the Bitcoin market skyrockets, Polis' campaign stands to reap significant riches.

 Politics investigations in your inbox: Sign up for the Center for Public Integrity's Watchdog email.

 While the FEC may only have blessed Bitcoin contributions of up to $100 per person, candidates such as Polis are allowed to let their accumulated Bitcoin appreciate in value. An initial $100 Bitcoin donation could suddenly be worth $1,000, or $10,000, within a matter of days or weeks.

 As of March 31, Polis reported about $300,000 cash on hand as he seeks a fourth term in office in a Democratic-leaning district that includes Boulder and Ft. Collins. During the first three months of the year, he raised about $159,000.

 Polis' bullish attitude toward Bitcoin is hardly surprising, given his success creating and selling Internet-based businesses during the 1990s and 2000s. He ranks among Congress' richest members, with the Center for Responsive Politics estimating that his wealth in 2012 potentially reached $330 million.

 And in April, Polis became the first known member of Congress to purchase Bitcoin.

 Bitcoin is hardly the only digital currency in circulation. Other, even more exotic formats have also popped into existence during the past several years.

 But Polis has "no immediate plans to take other forms of digital currency being that Bitcoin is the only one the FEC has issued guidelines on," said Kaufmann, his campaign manager.

 He will also adhere to the FEC-prescribed $100-per-contribution limit, she said.

 Several other political candidates, including Rep. Steve Stockman, R-Texas, declared prior to the FEC's guidance that they would accept political contributions in the form of Bitcoin.
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