[2014-04-23] The Hill: FEC supportive of allowing bitcoins for campaigns

[bryant.coleman]

http://thehill.com/blogs/hillicon-valley/technology/204166-fec-supportive-of-allowing-bitcoins-for-campaigns

The Federal Election Commission (FEC) on Wednesday indicated support for a request to allow campaigns to accept bitcoins ahead of the 2014 midterm elections.The commission delayed a formal vote on a petition to be able to accept up to $100 worth of the money, but commissioners seemed optimistic that they could draft a compromise to allow a limited amount of contributions in the virtual currency.

[RodeoX]

It could be much bigger than that. I'll admit something here.

Several months ago I filed to open my own superpac denominated in BTC. I was shocked to have my filing accepted. I did not give banking information, as the form requested, rather I sent them bitcoin addresses. I could accept unlimited contributions to finance my efforts. In the end I ran into problems at the state level, but it got the attention of a lot of lobbyist types. We have not heard the last about bitcoin contributions.

http://bitcoinvoterspac.org/

[saizai]

Several months ago I filed to open my own superpac denominated in BTC. I was shocked to have my filing accepted.

They don't really screen it on initial acceptance … and you did get an RFAI even after you terminated because of the requirement that PACs have a depository account.

What happened with that anyway? I haven't seen any update on it.

[RodeoX]

Several months ago I filed to open my own superpac denominated in BTC. I was shocked to have my filing accepted.

They don't really screen it on initial acceptance … and you did get an RFAI even after you terminated because of the requirement that PACs have a depository account.

What happened with that anyway? I haven't seen any update on it.

It didn't get that far. At the state level you must pay a filing fee in U.S. dollars. I was interested in seeing how far one could get exclusively in bitcoin. I was arguing that a bitcoin wallet could be considered a depository account. It's really even more transparent than that. A bitcoin address can be monitored in real time, whereas a bank account is difficult to access.   

[saizai]

It didn't get that far. At the state level you must pay a filing fee in U.S. dollars.

Depends on the state. ISTR that most are free (for PACs at least, not parties). (We haven't done state registrations yet; will probably get to that soonish though.)

I was interested in seeing how far one could get exclusively in bitcoin. I was arguing that a bitcoin wallet could be considered a depository account. It's really even more transparent than that. A bitcoin address can be monitored in real time, whereas a bank account is difficult to access.

I get where you're coming from, but I don't see how you could make that argument, legally.

The definition 11 CFR 103.2 / 2 USC 432(h)(1) clearly excludes Bitcoin wallets:

Each political committee shall designate one or more State banks, federally chartered depository institutions (including a national bank), or depository institutions the depositor accounts of which are insured by the Federal Deposit Insurance Corporation, Federal Savings and Loan Insurance Corporation, or the National Credit Union Administration, as its campaign depository or depositories. One or more depositories may be established in one or more States. Each political committee shall maintain at least one checking account or transaction account at one of its depositories. Additional accounts may be established at each depository.

… and Bitcoin isn't tied to KYC regs, which is kinda the point of that definition.

[RodeoX]

It didn't get that far. At the state level you must pay a filing fee in U.S. dollars.

Depends on the state. ISTR that most are free (for PACs at least, not parties). (We haven't done state registrations yet; will probably get to that soonish though.)

I was interested in seeing how far one could get exclusively in bitcoin. I was arguing that a bitcoin wallet could be considered a depository account. It's really even more transparent than that. A bitcoin address can be monitored in real time, whereas a bank account is difficult to access.

I get where you're coming from, but I don't see how you could make that argument, legally.

The definition 11 CFR 103.2 / 2 USC 432(h)(1) clearly excludes Bitcoin wallets:

Each political committee shall designate one or more State banks, federally chartered depository institutions (including a national bank), or depository institutions the depositor accounts of which are insured by the Federal Deposit Insurance Corporation, Federal Savings and Loan Insurance Corporation, or the National Credit Union Administration, as its campaign depository or depositories. One or more depositories may be established in one or more States. Each political committee shall maintain at least one checking account or transaction account at one of its depositories. Additional accounts may be established at each depository.

… and Bitcoin isn't tied to KYC regs, which is kinda the point of that definition.

I was never optimistic about the chances of it working. That is why I was surprised it even made the first phase. My big vision was an automated platform for up-voting expenditure ideas. For example, users could help fund a billboard with a message to lawmakers about bitcoin. Donations would require disclosure that meets KYC reporting laws.
In my phone conversations with the FEC they were surprisingly supportive and made suggestions as to how I might do that with bitcoin. But pushing any farther looked like an expensive legal fight.
Oh and here is Wisconsin you have to pay to file if you are a party or a PAC.

[saizai]

My big vision was an automated platform for up-voting expenditure ideas. For example, users could help fund a billboard with a message to lawmakers about bitcoin. Donations would require disclosure that meets KYC reporting laws.

Crowdfunded / chosen political ads are actually part of what we're planning to do too — it's just not version 1. (And of course, we'd be very careful to obey all the regulations around it.)

Developers welcome. https://makeyourlaws.org/files/2min.pdf for the tl;dr of the stack & near term TODO list. ;-)

[Bit_Happy]

It didn't get that far. At the state level you must pay a filing fee in U.S. dollars.

Depends on the state. ISTR that most are free (for PACs at least, not parties). (We haven't done state registrations yet; will probably get to that soonish though.)

I was interested in seeing how far one could get exclusively in bitcoin. I was arguing that a bitcoin wallet could be considered a depository account. It's really even more transparent than that. A bitcoin address can be monitored in real time, whereas a bank account is difficult to access.

I get where you're coming from, but I don't see how you could make that argument, legally.

The definition 11 CFR 103.2 / 2 USC 432(h)(1) clearly excludes Bitcoin wallets:

Each political committee shall designate one or more State banks, federally chartered depository institutions (including a national bank), or depository institutions the depositor accounts of which are insured by the Federal Deposit Insurance Corporation, Federal Savings and Loan Insurance Corporation, or the National Credit Union Administration, as its campaign depository or depositories. One or more depositories may be established in one or more States. Each political committee shall maintain at least one checking account or transaction account at one of its depositories. Additional accounts may be established at each depository.

… and Bitcoin isn't tied to KYC regs, which is kinda the point of that definition.

I was never optimistic about the chances of it working. That is why I was surprised it even made the first phase. My big vision was an automated platform for up-voting expenditure ideas. For example, users could help fund a billboard with a message to lawmakers about bitcoin. Donations would require disclosure that meets KYC reporting laws.
In my phone conversations with the FEC they were surprisingly supportive and made suggestions as to how I might do that with bitcoin. But pushing any farther looked like an expensive legal fight.
Oh and here is Wisconsin you have to pay to file if you are a party or a PAC.

You created a fascinating experiment.
I'm also really surprised the Federal application was so easy.