The South Carolina Ethics Commission issued an opinion finding candidates for public office may not accept campaign contributions in the form of digital cryptocurrencies, including Bitcoin.

Advisory Opinion 2021-001 references and adopts the reasoning of a similar opinion issued in 2018 by the South Carolina House Ethics Committee.

The opinions found cryptocurrencies do not meet the definitions of a “thing of value” or “contribution” as defined under current state law.

Both opinions state the decision to permit such contributions should be done through an act of the Legislature rather than through an advisory opinion.

On May 14, a bill was introduced in the Minnesota House of Representatives to prohibit political candidates from accepting certain digital currency like bitcoin unless backed by an official legal currency.

House File 2884 would prohibit an individual, political committee, political fund, principal campaign committee, or party unit from soliciting or accepting a contribution or donation of any digital unit of exchange.

This includes but is not limited to bitcoin, that is not backed by a government-issued legal tender.

Under the bill, a person knowingly accepting any prohibited digital unit of exchange would be guilty of a felony.

The legislation also imposes a civil penalty of up to $3,000 for any individual, political committee, political fund, principal campaign committee, or party unit knowingly soliciting or accepting any digital unit of exchange.

On December 13, the Federal Election Commission (FEC) may consider whether allowing an individual volunteering to allow the processing power of his or her internet-enabled device to mine cryptocurrencies for the benefit a political committee would be considered a political contribution.

An advisory opinion request asks the FEC if a federal political committee could allow its individual supporters to volunteer the processing power of their internet-enabled devices to pool the processing power of these devices, which results in the mining of a “block.”

Mining allows transactions between users to be authenticated and generates a new cryptocurrency unit for the miner as a reward for creating the “block” and pays the miner a transaction fee. Creating blocks requires enormous amounts of computing power and can take years to generate a valid “block” by a single miner.

The FEC may consider Draft Advisory Opinion 2018-13 (Draft A) at its open meeting December 13, or hold it over for a future date.

The Fair Political Practices Commission is considering changes to state campaign finance regulations.

The commission was asked to consider the permissible use of cryptocurrency, such as Bitcoin, for campaign contributions and expenditures. Though similar to cash, such currency is not issued by a governmental entity.

Issues expected to be discussed at a public hearing include banning the use of cryptocurrency for campaign purposes, limiting cryptocurrency contributions to the amount of contributions received in cash, requiring cryptocurrency contributions to be converted to cash, permitting committees to establish separate cryptocurrency accounts, or permitting cryptocurrency contributions as in-kind contributions without regard to cash limits.

A public hearing will be held September 20, 2018; written comments should be received by September 18.

Lobbying

“That ‘Bravo’ reality show about lobbyists? It’s not happening.” by Emily Heil and Helena Andrews in The Washington Post.

Michigan: “Lobbyists spending more on Michigan politicians this year” by Andrew Green on WKZO News.

Campaign Finance

“Outsiders Add Money and Negativity to State and Local Elections” by Chris Kardish in Governing.

“Mystery Money: Your Guide to Campaign Finance in 2014” by Rebecca Ballhaus in The Wall Street Journal.

“Billionaire donors to watch” by Tim Divaney in The Hill.

Arizona: “‘Dark money’ floods Phoenix pension election” by Dustin Gardiner in The Arizona Republic.

Connecticut: “Outside money pouring into Connecticut governor race despite public campaign funding system” by Susan Haigh (Associated Press) in The Republic.

Massachusetts: “Bitcoin makes an itty-bitty splash in MA politics” by Jordan Graham in the Boston Herald.

Wyoming: “Legislature may take on independent expenditures” by LAURA HANCOCK in the Casper Star-Tribune.

Ethics

“Ex-GSA official indicted in spending scandal” by Peter Sullivan in The Hill.

Illinois: “Lobbyist’s attorney: Roland Burris involved in shakedown while in Senate” by Jason Meisner in the Chicago Tribune.

Maryland: “Md. elections board: Leggett improperly used campaign funds for trips” by Bill Turque in The Washington Post.

Oklahoma: “Informal hearings set by Ethics Commission” in The Edmund Sun.

Virginia: “Full list of McAuliffe ethics commission members” by Travis Fain in the Daily Press.

Elections

“Voter Turnout Plummeting in Local Elections” by Mike Maciag in Governing.

Michigan: “Dems asked to end online absentee ballot program” by The Associated Press in the Detroit Free Press.

Ohio: “Appeals court: Early voting can start Tuesday” by The Associated Press in the Cincinnati Enquirer.

Virginia: “450,000 in Va. may lack proper ID needed to vote” by Antonio Olivo and Jenna Portnoy in The Washington Post.

Political Advertising

“There have been roughly 550,000 state race TV ads this campaign season — so far” by Niraj Chokshi in The Washington Post.

State Legislatures

“The Evolution of State Legislatures Has Driven Some to Flee” by Alan Ehrenhalt in Governing.

Tech and Social Media

“These 7 local governments will Code for America in 2015” by Luke Fretwell in Govfresh.

Lobbying

“Under Contract” in The Hill.

“13 K Streeters cross the street” by Byron Tau in Politico.

“Bitcoin gaining currency on K Street” by Megan R. Wilson in The Hill.

Louisiana: “Louisiana business association reviews legislative session: Four things you need to know” by Julia O’Donoghue in The Times-Picayune.

Campaign Finance

“Lawrence Lessig on His Super PAC to End Super PACs” by Denver Nicks in TIME.

“Chamber of Commerce Spends $780K for Kingston” by Kent Cooper in Roll Call.

North Carolina: “Political action committees have big impact on campaigns” by Susan Ladd in the News & Record.

Ethics

Hawaii: “New Chair Will Steer Hawaii Ethics Commission Through Disclosure Law” by Nathan Eagle in the Honolulu Civil Beat.

Louisiana: “New Orleans Ex-Mayor Ray Nagin Sentenced to 10 Years” by Cameron McWhirter in The Wall Street Journal.

Congress

“Capitol partially closed due to spill” by Mario Trujillo in The Hill.

Government Tech and Social Media

West Virginia: “W. Va. Proceeds With Massive Computer Overhaul, Employees Struggle With the Switchover” in Government Technology.

Lobbying

“Under Contract” in The Hill.

“MPAA’s Michael O’Leary steps down – Big 12 hires a lobbying firm” by Byron Tau in Politico.

Missouri: “Lobbyists’ gifts to Missouri lawmakers exceed $500,000” by Angela Mueller in the St. Louis Business Journal.

Campaign Finance

“BitPay, CoinVox Team Up to Allow Politicians to Accept Bitcoin” by Eric Calouro in NewsBTC.

Delaware: “Campaign finance reform bills languish in legislature” by Jonathan Starkey in The News Journal.

Massachusetts: “Bill would increase PAC disclosures” by Frank Phillips in the Boston Globe.

New York: “Blame Game After Push to Revamp Campaign Financing Ends” by Mike Vilensky in The Wall Street Journal.

North Carolina: “N.C. election laws ‘stuck in pre-computer age’” by Jim Morrill in the Charlotte Observer.

Vermont: “Advocacy group turns sights to money in politics” by Neal P. Goswami in the Rutland Herald.

Ethics

“Prosecutor asks court: Reinstate DeLay convictions” by Juan A. Lozano (Associated Press) in the Houston Chronicle.

“Grand Jury Probes Capitol Knowledge & Stock Trading” by Kent Cooper in Roll Call.

Hawaii: “Ethics Commission Tells Lawmakers How They Should Spend Allowances” by Nathan Eagle in the Honolulu Civil Beat.

Elections

New York: “This is what happens when a campaign finance scholar runs for governor” by Max Ehrenfreund in The Washington Post.

Wisconsin: “Jon Erpenbach drops appeal in email open records case” in the Journal Sentinel.

State Legislatures

South Carolina: “SC House OKs $12,000 pay raise for lawmakers, overriding Gov. Haley’s veto” by Cassie Cope in The State.

In an advisory opinion released today, the Federal Election Commission (FEC) acknowledged bitcoins as an acceptable form of political contribution. The FEC determined Make Your Laws PAC, Inc. can accept and purchase bitcoins.

The commission concluded “bitcoins are ‘money or anything of value’ within the meaning of [2 U.S.C. §431(8)(A)(i)].” It also stated bitcoin contributions may be held in a “bitcoin wallet until the committee liquidates them” and the valuation of a bitcoin donation is made “at the time the contribution is received.” However, the commission did not have the requisite four affirmative votes to decide whether bitcoin contributions could be used to acquire goods or services.

According to the Washington Post, FEC Chairman Lee Goodman said, “Just philosophically, I think it’s important for the FEC to embrace technology and innovation, and that’s what we did today.”

Lobbying

“Top lobbyist Gerry Cassidy to step down” by Byron Tau in Politico.

Saskatchewan, Canada: “Lobbyist legislation coming to Saskatchewan” by David Giles in Global News.

Campaign Finance

“FEC deadlocks, for now, on whether political committees can accept bitcoin” by Matea Gold in The Washington Post.

“What A Bitcoin Political Debut Could Mean For Transparency” by Peter Overby (NPR) on WYSO.

Fort Wayne, Indiana: “Election Board for county is moving” in The Journal Gazette.

Louisiana: “Apparent campaign violations, large expenses should prompt reforms in Louisiana law, some say” by Manuel Torres and Lee Zurlk in the Times-Picayune.

New Jersey: “Election commission: Morris freeholder violated campaign finance rules in close primary race” by Ben Horowitz in the Star-Ledger.

Virginia: “Virginia campaign mailings attract scrutiny” by Mike Gangloff in The Roanoke Times.

Ethics

“In Quick Fashion, House Broadens Program for FEC Fines” by Kent Cooper in Roll Call.

North Carolina: “Civitas Institute leader named to NC ethics panel” by The Associated Press in GoErie.com.

Oklahoma: “Rep. Reynolds Blasts Ethics Commission for Proposed Rules” in the Daily Ardmoreite.

Elections

“Election Enforcement Officials Will Investigate 2 Campaign Complaints Against Malloy” by Hugh McQuaid in CT News Junkie.

Procurement

Louisiana: “Campaign finance transparency not enough to fix Jefferson Parish’s contracting problems, groups say” by Manuel Torres and Lee Zurlk in the Times-Picayune.

Lobbying

California: “Ex-lobbyist joins councilman’s staff and questions follow” by David Zahniser in the Los Angeles Times.

Kentucky: “Chandler moves into role as lobbyist in Ky.” by The Associated Press in WTVQ ABC News.

West Virginia: “Lobbyists spend $39k wining, dining WV officials” by The Associated Press in the Herald-Dispatch.

Campaign Finance

Arizona: “GOP: More campaign contributions should be allowed” by Howard Fischer in the Arizona Daily Sun.

New Hampshire: “How one state representative raised $1,600 for his campaign — in bitcoins” by Brian Fung in The Washington Post.

Ohio: “Common Cause Ohio questions state’s lobbying disclosures” by Marc Kovac in the Daily Jeffersonian.

Vermont: “Vt. Supreme Court says Democratic-leaning organization didn’t register as political group” by The Associated Press in The Republic.

Ethics

“Harvey Whittemore to be sentenced Monday for campaign finance scheme” by Jeff German in the Las Vegas Review-Journal.

Arkansas: “Some lawmakers suggest including ethics reform in special session” by Rob Moritz in Arkansas News.

Florida: “Inspector General: West Palm Beach should not have repaid Mitchell in ethics probe” by Eliot Kleinberg in the Palm Beach Post.

North Carolina: “Former NC auditor says he will leave State Ethics Commission after questions over DHHS role” by The Associated Press in The Republic.

State Legislatures

Illinois: “In blow to Gov. Quinn, judge rules state lawmakers must be paid” by Dave McKinney, Jon Seidel And Mitch Dudek in the Chicago Sun Times.

Oregon: “Oregon legislators return for special session” by Reid Wilson in The Washington Post.

Oregon: “Anxiety high as special session looms” by Hannah Hoffman in the Statesman Journal.

Pennsylvania: “Legislators taking leave and missing the vote” by Angela Couloumbis in the Philadelphia Inquirer.

Social Media

New York: “NYC Mayoral Race Shows ‘Shareable Graphics Are…The New Black’ in Digital Campaigning” by Miranda Neubauer in TechPresident.