Presidential candidates in the United States are accepting campaign donations in Bitcoin.
On Friday, Vivek Ramaswamy and Robert F. Kennedy Jr. both announced their intention to accept BTC donations ahead of the 2024 primaries.
RFK Jr Becomes the First Presidential Candidate to Accept Crypto
Robert F. Kennedy Jr, who is vying to become the next Democratic presidential candidate, made his announcement Friday at the Bitcoin 2023 convention in Miami. In doing so, his campaign became the first in American history to openly accept cryptocurrency donations.
Kennedy told a crowd of BTC enthusiasts that “almost everyone in this room is aware of the connection between Bitcoin and democracy and freedom.”
Moving on, he promised to be an advocate for cryptocurrency if he becomes president. “I will ensure that your right to own and use Bitcoin is inviolable,” he told the audience.
During his spechKennedy laid out plans to defend Americans’ rights to own and mine BTC.
He also promised to ensure sector-neutral energy regulation that does not penalize Bitcoin miners. He then emphasized that the cryptocurrency is not a security and said he would ensure it is not declared as such.
The presidential candidate stated his intention to make the US a dominant player in the crypto sector and said he would improve the policy environment, making it more favorable for crypto companies. “I will reverse the government’s growing hostility towards this industry,” he stressed.
In comments that will appeal to libertarian cryptocurrency advocates, Kennedy even hinted at a presidential pardon for Ross Ulbricht. The founder of the Silk Road darknet marketplace is currently serving two life sentences for multiple charges. “I will consider whether they were prosecuted for actual crimes or as a means to target crypto,” Kennedy said.
Republican candidate Vivek Ramaswamy uses BitPay to accept BTC donations
Not to be outdone by the Democrats, the Republican party has its own Bitcoin champion in Vivek Ramaswamy.
Just hours after Kennedy made his groundbreaking announcement, Ramaswamy tweeted that his campaign would also accept donations from BTC. By sharing a BitPay donation link, he asked followers to give one dollar. “Let’s make 2024 an election about fiat currencies,” the tweet concluded.
After following the link, US citizens are invited to donate up to USD 6,600 worth of crypto. In addition to Bitcoin, BitPay’s payment service also supports other cryptocurrencies, including Bitcoin Cash, Ether, Litecoin and Dogecoin.
Anyone who donates to Ramaswamy’s campaign will then be eligible to mint a commemorative NFT using the Proof of Attendance Protocol (POAP).
Lawmakers want to curb crypto in campaign finance
Kennedy and Ramaswamy may be the first US presidential candidates to officially include crypto in their fundraising efforts. But crypto donations themselves are nothing new to politics.
In Ireland, the government last year banned all crypto donations to political parties. The decision was made due to concerns that cryptocurrencies could be used to obscure the source of funds.
And in February, lawmakers in the Kansas House of Representatives introduced it an invoice proposing to change the rules for donations to political campaigns.
The legislation would ban crypto contributions over $100 for any political candidate in the state’s primary or general election. Even for donations under the $100 threshold, recipients would need to immediately convert their donations to dollars.
FTX political donations in the spotlight
Moves to reign in crypto’s role in campaign finance come as political donations made by Sam Bankman-Fried’s collapsed business empire come under intense scrutiny. The founder of FTX was one of the largest political donors in the US. During the 2021/2022 election cycle, he reportedly spent nearly $40 million.
And he wasn’t the only one either. Other FTX executives also spent money on campaign donations.
As part of an investigation into the collapse of FTX, a residence belonging to the company’s former co-CEO was recently raided by the FBI. Agents searched Ryan Salame’s home, with many speculating that the raid was related to political donations. Salame reportedly donated around 24 million to political campaigns.
Nishad Singh, former technical head of FTX, was also a prominent political donor. Singh pleaded guilty in February to fraud and campaign finance charges.
Meanwhile, the bankrupt exchange is demanding that recipients repay their donations. In an effort to recover money for creditors, the company has threatened to sue political campaigns that do not return the money received.