The National Republican Congressional Committee will accept cryptocurrency campaign contributions using the payment service Bitpay, a provider of Bitcoin and XRP. The NRCC is the financing arm for House Republicans and will become the first national party committee to begin accepting cryptocurrency for campaign donations.
This move supports candidates as the GOP intensifies its work in retaking the House in next year’s midterms. Navigating and using this new technology could be advantageous as candidates feel the pressure growing in fundraising for their campaigns.
This may put the NRCC at the forefront of the growing financial technology that is cryptocurrency while also testing campaign finance rules.
Axios reports, “Crypto donations will be immediately converted into dollars before adding in the NRCC’s account. (This will) allow them to accept individual donations of up to $10,000 per year, rather than the $100 value for transfers of actual cryptocurrency like Bitcoin that the FEC approved in a 2014 ruling.”
This allows the NRCC not to receive crypto at point-blank but rather solicit proceeds from their sales and allow a more seamless transaction from crypto holdings to political contributions.
Even though the NRCC is technically the first party committee to accept crypto donations, a couple of federal political candidates have accepted crypto donations, such as former presidential and New York City mayoral hopeful Andrew Yang.
The growing usage of cryptocurrency is making its way into every area of Americans lives, even our political system. As the NRCC adopts this donation adjustment, the growth of crypto usage will abound in other areas of our political system, campaign fundraising, and maybe one day the fabric of our financial system.