North Carolina Bans Donations in Crypto for Political Campaigns

  • The state of North Carolina seemingly isn't accepting cryptocurrency donations for political campaigns.
  • Notably, the Federal Elections Commission (FEC) has seemingly been allowing candidates to accept BTC donations.

The North American state of North Carolina has recently banned political campaign donations in bitcoin or other cryptocurrencies as these “cannot be reliably valued,” and could see donations surpass legally established limits expressed in USD.

According to The News & Observer Emmanuel Wilder, a Republican candidate running in the 2018 US midterm Legislature elections, recently asked the North Carolina State Board of Elections and Ethics whether or not he could accept donations in bitcoin and other cryptocurrencies to fund his campaign.

When reaching out to the State Board, Wilder added suggestions as to how these donations could be value, already expecting his request to be denied. In an email, he wrote that it would be a “great opportunity to show that North Carolina is truly open to new emerging markets.”

Kim Westbrook Strach, the state elections executive director, got back to Wilder in a letter revealing he couldn’t accept cryptos as these couldn’t “be reliably valued.” Presumably, Strach’s stance is derived from the volatility in the cryptocurrency ecosystem. Bitcoin, the flagship cryptocurrency, saw its value fall from a near $20,000 all-time high to $7,600 at press time.

Per Strach’s words, the board doesn’t “have the confidence” that it could “adequately regulate contributions to a political campaign in North Carolina in the form of cryptocurrency.”  In response, Wilder issued a statement revealing he was disappointed. It read:

Blockchain and other technologies hold the ability to improve how business and public institutions operate day to day. Although it might not be today, there will be a day when this technology will have a place in the political process.

Emmanuel Wilder

Earlier this year US Senate candidate Austin Peterson received a $13,000 bitcoin donation he was forced to return, as it exceeded the $5,400 individual contribution limit the Federal Elections Commission (FEC) set.

Since 2014, the FEC has been allowing candidates to accept BTC donations, as long as these don’t go over the individual contribution limit. In a Facebook post, Petersen advised whoever donated the funds to start a political action committee (PAC).

A PAC is an organization that’s formed to raise funds on behalf of candidates running for public office, who represent the interest of the organization behind the PAC. As CryptoGlobe covered, popular San Francisco-based cryptocurrency exchange Coinbase recently established a PAC.

Bitcoin Dives Below $8K, but We Are ‘A Long Long Way From Miner Capitulation’

Siamak Masnavi

According to data from CryptoCompare, on Thursday (November 21), between 08:30 UTC and 08:40 UTC, the price of Bitcoin (BTC) fell below $8,000 for the first time since October 25:

BTC-USD One Month Chart on 21 Nov 2019.png

The Bitcoin price kept falling, and by 10:11 UTC, it had reached $7,916, meaning that (at the time of writing) Bitcoin is down 2.11% in the past 24-hour period:

BTC-USD - 24 HOUR CC CHART - 21 NOV 2019.png

That was the bad news.

The good news is that prominent macro economist and crypto analyst/trader Alex Krüger believes that, despite what you may have heard, "the market is a long long way from miner capitulation."

In a post on Twitter around 16:51 UTC yesterday (November 20), Krüger explained that although miner capitulation could happen "eventually" we are nowhere near that point since the Bitcoin hash rate has only dropped 4% recently:

Yesterday, John Pfeffer, Founder of Pfeffer Capital, Travis Kling, Founder and CIO of Ikigai Asset Management, and Charles McGarraugh, Head of Markets for Blockchain discussed the outlook for Bitcoin with Bloomberg's Alastair Marsh at The Future of Digital Assets briefing in London.

Marsh started the discussion by asking the panel if they agreed with the idea that in the current macroeconomic environment the narrative of Bitcoin as a macro hedge is especially strong. 

McGarraugh stated:

"Yeah, I totally buy into that idea.I think that it's a great idea... Bitcoin is awesome because your property rights are an operational fact of possessing the private key rather than the jurisdictional artifact of recourse to a legal system that may or may not re-trade you at some future date."

Update at 11:36 UTC on November 21:

Around 11:21 UTC, Alex Krüger took to Twitter again, this time to explain under what scenario he could envision miner capitulation in the medium term:

 

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