FEC Approves Congressional Candidate To Issue Volunteers ERC-20 Tokens ‘Omar2020’
“We are responding to your advisory opinion request on behalf of your principal campaign committee, Omar2020, regarding the application of the Federal Election Campaign Act, and Commission regulations to the Committee’s proposal to distribute digital blockchain tokens with no monetary value to volunteers and supporters as an incentive to engage in volunteer activities. The Commission concludes that the proposed activities as described in the request are permissible under the Act and Commission regulations.”
OMR Tokens will be distributed to volunteers based on an “involvement scale” ranging from one OMR Token given to each attendee of a blockchain technology informational tutorial organized by the Committee to 1,000 OMR Tokens for hosting a campaign event.
Although there is a catch. OMR token, as admitted by the campaign is not a cryptocurrency. The Commission concludes that the terms of OMR Tokens to volunteers would not authorize compensation for their services.
The Committee has represented that OMR Tokens have no monetary value, are not a type of cryptocurrency, and cannot be used to purchase goods or services. The only purpose of OMR Tokens is to provide campaign volunteers and supporters with a novel mean of show assuming their support for Mr. Reyes’ campaign.
Instead of being a form of compensation, OMR is like more traditional types of campaign souvenirs, such as bumper stickers, yard signs or buttons — all of which are regularly distributed by campaigns to volunteers and supporters at no cost to the volunteer or supporter, and without implicating federal campaign finance law.
Democratic presidential campaigners Eric Swalwell and Andrew Yang have both offered to accept cryptocurrency donations for their campaigns. Yang spoke about a possible cryptocurrency of his own, YangCoin, and about the possibility of pitching himself as someone who is a politician but also a friend of the crypto community.