FEC Advisory Opinions: Blockchain Tokens, T-Shirts, & Cybersecurity - State and Federal Communications

July 12, 2019  •  

FEC Advisory Opinions: Blockchain Tokens, T-Shirts, & Cybersecurity

On July 11, the Federal Election Commission (FEC) issued three Advisory Opinions addressing diverse campaign finance issues.

In Advisory Opinion 2019-08, the FEC found a campaign committee was free to distribute digital blockchain tokens, having no monetary values, to volunteers and supporters as incentives for those individual to participate in campaign activities. The Commission concluded the tokens do not constitute compensation, but rather are “materially indistinguishable” from traditional forms of campaign souvenirs.

In Advisory Opinion 2019-09, the FEC determined a nonconnected political committee may sell t-shirts bearing the facial likenesses and names of certain candidates because the committee intends on treating the entire purchase price of the t-shirts as contributions falling under regular campaign finance reporting requirements and contribution limits.

In the third decision issued, Advisory Opinion 2019-12, the FEC said it is permissible for a corporation to offer cybersecurity services to federal candidates and political committees under a “low to no cost” pricing tier that the corporation offers to all qualified non-political customers in the ordinary course of business. The FEC concluded the proposal would not be considered an in-kind contribution.

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