Congressman Steve Stockman (R-Texas) accepting Bitcoin political donations

Posted by on Jan 2, 2014 | 0 comments

Stockman-R-TXNow this is interesting. According to the BusinessInsider and USA Today, Representative Steve Stockman (R-Texas) is accepting political donations to his senatorial campaign in Bitcoin.

What is even more interesting is how the FEC will handled Rep Stockman’s next compliance filing. Back in November, the FEC was unable to come to an agreement on whether they would allow political donations to a federal campaign via Bitcoin.

According to the Washington Post,

(FEC) Chair Ellen Weintraub stressed that the lack of action did not mean the panel would not approve bitcoin donations at some point, but said that the Internet cash raised many complicated questions – particularly about disclosure and whether bitcoins constitute money – that required more examination.

I still don’t see how the FEC is going to contend with the wild west volatility in Bitcoin values. A couple of weeks ago, Bitcoin’s value went from more than $1,100 to around $650 in a few hours, because of a new rule in China.

Bitcoin is interesting and could lead to a major disruption to the payment industry, but until Bitcoin becomes a stable form of currency, how can the FEC can embrace it as a vehicle for political donations?