NFT to raise funds for election campaign
2022.12.23 14:44
NFT to raise funds for election campaign
Budrigannews.com – DataVault Holdings may use nonfungible tokens for fundraising, according to an advisory opinion issued by the Federal Election Commission (FEC) of the United States.
The Federal Election Commission (FEC) issued a notice on December 15 stating that it was “permissible” for DataVault holdings to send nonfungible tokens, or NFTs, to contributors to political campaigns without infringing on regulations regarding corporate contributions. DataVault will keep track of all issued tokens for its own records and will receive “reasonable compensation” for each NFT issued to contributors, according to the election agency.
FEC Chair Allen Dickerson stated, “The Commission concludes that DataVault’s proposals to provide political committees with NFTs on the same terms it regularly offers its non-political clients would be a permissible extension of credit by DataVault in the ordinary course of business.” Political committees may receive credit from an incorporated commercial vendor on terms substantially comparable to those provided to non-political debtors under the Act and Commission regulations. DataVault is a ‘business seller’ on the grounds that its typical and ordinary business includes the arrangement of the very benefits that it proposes to give to political councils.”
“We are very pleased by the unanimous approval by the FEC of our patented DataVault platform for use by political campaigns here in the US. In a broader view, we believe, Blockchain technology represents the future for elections that seek to be trusted and transparent in their outcomes in the future.”
In September, DataVault’s legal team proposed that the company be permitted to send NFTs to contributors to political committees as souvenirs, “in a manner akin to a campaign hat.” The holders of the tokens would also be able to use them to promote a campaign “strictly on a volunteer basis and without any compensation,” according to the proposal. DataVault says that any fees from transactions or issuing NFTs would be reported as a “fundraising expenditure.”
In a 2019 advisory opinion on blockchain tokens, the Federal Election Commission stated that some of them were “materially indistinguishable from traditional forms of campaign souvenirs.” In that instance, Omar Reyes, a congressional candidate, used tokens that had “no monetary value” as an incentive to volunteer for the campaign.
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NFTs have occasionally been linked to global political campaigns. In January, the Democratic Party candidate Lee Jae-myung’s campaign in South Korea said it would give donors NFTs with pictures of the politician and his campaign promises.
