US Congressional Candidates Issue NFT for Campaign Funding

California Democrat Shrina Kourani and Arizona Republican Blake Masters have proposed the NFT to raise funds for their campaign for the US Congress. Bloomberg writes about it.

US Campaign Finance NFT Details

The initiative allowed Kurani to enlist the support of the young population. She raised $ 6,610 through the SolSea marketplace.

Masters raised $ 575,000 on a promise to present NFT supporters with the cover of a startup book. He co-wrote it with PayPal co-founder Peter Thiel.

According to political strategists, cryptocurrencies are still far from becoming a permanent source of contributions. On top of that, there remains uncertainty about compliance with campaign finance rules.

Eight years after the FEC approved the digital deposit option, only 12 campaigning committees have seized the opportunity. In total, their fees amounted to about $ 1 million, while thousands of candidates as a whole during this period collected tens of billions of dollars in fiat.

According to Democratic consultant Mike Freyoli, such statistics suggest that digital assets remain a “mystery” for most people.

Senator Cynthia Lammis, who accepts Bitcoin donations, is committed to ensuring clarity in cryptocurrency regulation.

“Financial innovation is good, including in politics. Currently, only a few members of Congress accept cryptocurrencies, but their number will grow. We are at the beginning of the digital asset revolution, ”the politician said.

Committees and sponsors tend to be wary of new technologies due to strict campaign funding rules. Approved back in 1999, online payments using payment cards became widespread only after Barack Obama won the 2008 presidential election.

Critics fear that cryptocurrencies can hide the names of sponsors, which is prohibited by federal law.

Democratic representatives on the FEC in 2014 insisted that such contributions should not exceed $ 100 due to the difficulty in tracking them. Due to the position of the Republicans, this limit was not introduced, but they were obliged to comply with the same requirements and restrictions on information disclosure as with other types of donations.

The National Party Committee, led by Congressman Tom Emmer, has been accepting cryptocurrencies since June. According to the legislator, “innovative technology will provide Republicans with the resources they need to succeed.” The structure did not provide the agency with information on the amount of funds raised.

South Korea is also interested in a similar scenario for using cryptocurrencies. According to the Korea Times, Lee Jae-Myung, the ruling Democratic Party’s candidate for the 2022 presidential election, will issue an NFT to fund his campaign. Sponsors will be able to pay for them in Bitcoin, Ethereum and three other cryptocurrencies, which they will choose later.

Previously, there were concerns that such fundraising could violate the Law on Political Foundations or the Law on the Election of Civil Servants.

Recall that at least one US senator and four congressmen have bought bitcoin or shares of cryptocurrency-related companies.

In December, Congress held hearings with the participation of top managers of the cryptoindustry, who, following the meeting, noted the “high level of involvement” of legislators.

The Senate later held a hearing on stablecoins.

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