FEC to Deal with Bitcoin Donations

The Federal Election Commission may decide whether to allow donations to political campaigns using Bitcoins.

Politico reports the Conservative Action Fund PAC has asked the FEC to rule whether candidates can accept the digital currency as donations, and whether to treat it as a cash or in-kind donation.

Like many national currencies, Bitcoin fluctuates in value. When exchanges for the currency first debuted, a single bitcoin was worth no more than a few dollars. Individual Bitcoin are now worth more than $100 a piece.

The currency — which is traded on multiple 24 hour-a-day/7 day a week exchanges — poses a problem for some campaigns and PACs, which are limited by law in how much money they can accept.

The fluctuations in Bitcoin’s value could pose complications for campaign committees trying to stay within contribution limits set by law. Conservative Action Fund is a so-called hybrid PAC that’s allowed to both contribute directly to candidates and make unlimited independent expenditures.