OsiaNetwork submitted a request to the U.S. Federal Election Commission (FEC) on September 10 that will, if approved, give politicians the right to collect funds from crypto mining.
Hence, all interested volunteers will be able to support politicians by using their computers to mine cryptocurrencies. If FEC adopts the proposal, it will be the first of its kind, opening a new channel for financing political campaigns. Currently, this case is in process of public commenting.
Crypto Mining for Political Cause
OsiaNetwork’s role in this subject will be to implement the mining platform. Through it, volunteers will lend their computer power for crypto mining. All coins collected in this mining pool will go directly to the political candidates. Therefore, volunteers will need to sign up on the platform and decide which device they want to lend for crypto mining. As long as they are logged in, they will actively mine cryptocurrency for their political cause.
In the request sent to FEC, OsiaNetwork asked for permission to implement their platform on the political committee’s websites. There, volunteers will be able to sign-up and lend their computer resources for crypto mining. As a result, every individual will have a personal account and see the number of hashes generated by its device.
However, volunteers will not own coins as OsiaNetwork will receive all mined coins. It will distribute mined coins to political committees and take a small share of the mining reward. As OsiaNetwork stated their fee would include a reasonable profit.
Bitcoin Donations FEC-approved
In May 2014, FEC approved that a political committee could receive bitcoin as an in-kind donation in a political campaign. Therefore, bitcoin is treated as a goods or a service needed for organization’s operations.
However, various U.S. states had a different opinion on this case. The state of California decided not to allow cryptocurrencies as a way of political campaign support. In addition, North Carolina followed California’s footsteps and barred political candidates from accepting cryptocurrency donations.
In June 2018, an interesting case happened in the state of Missouri. U.S. candidate, Austin Petersen, received a bitcoin donation valued at $130,000. FEC ordered him to return the donation as it was over the individual contribution limit of $5,400. Although not accepted, this is the largest cryptocurrency donation in U.S. history.