The Dawn of Crypto-PACs
Earlier this week, BitPAC made headlines by announcing plans for an initial coin offering (ICO), introducing a new utility token called Politicoin. This move begs the question: can crypto-centric Political Action Committees (PACs) redefine the way we contribute to politics in the U.S., especially as some states and prominent figures, like Hillary Clinton, turn their backs on digital assets?
Understanding PACs, Super PACs, and Hybrid PACs
At their core, PACs exist to raise and spend money to influence elections. Think of them as the middlemen between your passion for politics and your wallet. Originating around 1944 with the CIO backing FDR’s reelection, PACs have since evolved. Regular PACs can donate up to $5,000 per election to a candidate, and only $15,000 to a political party annually. Super PACs, however, can spend unlimited funds, albeit without directly contributing to campaigns, while Hybrid PACs can do both. Sounds like the political equivalent of choosing between a regular burger and a double-decker with extra bacon!
Meet Dan Backer and BitPAC
Dan Backer, dubbed the “father of the Hybrid PAC,” has been a trailblazer in this space. After experiencing a fluke with Bitcoin donations and recovering a hefty sum, Backer resurrected BitPAC and introduced Politicoin. His goal? To normalize crypto contributions in politics. His upcoming ICO aims to support candidates like the crypto-friendly Dan Bishop in North Carolina. Backer confidently asserts that the FEC has greenlit their approach, which is reassuring, right?
The Bumpy Road Ahead: Challenges of Crypto Donations
Despite legal approval for Bitcoin contributions since 2014, the usage of crypto donations remains scarce. For potential donors, a lengthy phone call with a compliance team is required to ensure contributions come from eligible U.S. voters. While blockchain makes transactions traceable, anonymity can raise red flags for regulators wary of foreign influence, as seen in the 2016 presidential race. Unfortunate implications loom, as a 2018 survey revealed that about 62% of Americans doubt the legality of crypto donations in politics.
The Current Landscape of Crypto in Politics
Not everyone is onboard with crypto contributions. Some candidates, including Brian Forde, faced backlash for accepting Bitcoin funding. Others, such as Andrew Yang’s Humanity Forward Fund, are navigating these waters somewhat successfully, utilizing tech tools to accommodate donations. As potential pitfalls remain—the complexity of managing multiple currencies and thorough reporting requirements—public demand for crypto contributions still seems tepid.
Final Thoughts: Is Crypto the Future for Political Donations?
The reality is, while regulations may allow crypto donations, the general public is still grappling with the practicality of it all. For now, it seems that adding cryptocurrencies to political fundraising is akin to adding pineapple on pizza—divisive, yet intriguing. As we watch BitPAC’s endeavors, we can only wonder: will crypto truly revolutionize political funding, or is it just another novelty?
