Bitcoin, or any other type of digital currency, is not allowed as campaign contributions in South Carolina’s state elections.
But if a Charleston supporter and his crypto supporters get what they want, eventually it will be.
“This really comes down to a free speech argument,” said Dennis Fassuliotis, executive director of PalmettoChain Inc., a blockchain driver who tries to make crypto money more widely recognized in the state.
“If I have a wealth of digital assets, why shouldn’t I be able to use this for campaign contributions?” he added.
At the moment, the state is not allowing it.
The SC Ethics Committee, in an advisory opinion dated Jan. 21, said it did not see cryptography as a legally acceptable form of political funding. This can only change if the Statehouse approves it through legislation, not by decision of a state agency, follows the logic.
“Unlike US dollars, Bitcoin is not issued by the government and does not have a physical currency or banknote associated with its circulation, like a Federal Reserve note,” says the commission’s opinion.
“Bitcoin can be used to buy goods anonymously,” he adds, reiterating: “The real life identity of a Bitcoin user, IP address and even country of operation cannot be traced reliably to a real human by an auditor. common technical skill. “
For electoral purposes, this goes against the most commonly accepted check donation method that is seen as more easily bankable, traceable and transparent.
The opinion of the Ethics Committee was requested by the group of Fassuliotis, PalmettoChain. It is not uncommon for people affected by state law issues to seek the commission for legal clarity.
The request came under “the realization that digital currency is moving to become more popular,” said PalmettoChain’s letter of inquiry.
Bitcoin, however, is recognized at the federal level, but as a contribution in kind.
“Bitcoins can be received and kept in a Bitcoin wallet until the committee liquidates them,” says the Federal Electoral Commission ruling.
He adds: “Keeping Bitcoins in a Bitcoin wallet does not relieve the committee of its obligations to return or refund a Bitcoin contribution that is from a prohibited source, exceeds the contributor’s contribution limit or is otherwise illegal.”
There is a very small group of state legislators who want to see cryptocurrency allowed in state elections. House Bill 3529 was introduced this year by Bitcoin’s main sponsor and supporter, Rep. Stewart Jones, R-Laurens, who says electronic money represents the financial future, so why not open the pipeline now?
“So many people have invested in it, and with so much uncertainty in the future of the dollar, I think we will see more and more people opting for market-based currency options like Bitcoin,” Jones told Palmetto Politics.
In Jones’ opinion, the simple work plan may be for candidates to create their own “wallets” of campaign or ledger donations where the cryptocurrency can be traced. Once in the wallet, electronic money can then be sold for US dollars in such a way that it falls below the state-given $ 1,000 per person donation limit for a state run.
On February 12, a Bitcoin was valued at $ 47,000, according to tracking services, although it fluctuates daily.
What remained open for discussion on the Jones project is how to deal with the historical anonymity associated with electronic money, which has a reputation for being favored by libertarians, investors, technicians, the underworld, foreign sources or those who have no faith in the contest. from the USA.
Fassuliotis said his defense is that Blockchain and other emerging technologies are going to change a wide variety of value methods over the next 20 years.
“There is a lot of competition between states and countries,” he added. “We just want to make sure that South Carolina is at the front of the pack and positioned to lead.”
Catch up Schuyler Kropf at 843-937-5551. Follow him on Twitter at @ skropf47.