The FEC (1) states that DataVault would track all tokens issued for its records and pay donors “fair remuneration” for each NFT.
Why are NFTs permitted now?
DataVault Holdings (2) may utilize nonfungible tokens for fundraising activities, according to an advisory opinion from the Federal Election Commission (FEC) of the United States. DataVault Holdings was “permitted” to distribute nonfungible tokens, or NFTs, to political campaign contributors by FEC guidelines on corporate contributions, according to a notification issued on December 15. The electoral agency said that DataVault would track all tokens issued for its purposes and get “fair remuneration” for each NFT distributed to donors.
The Commission determines that DataVault’s suggestions to offer political DataVault would be permitted to extend credit in the normal course of business to committees with NFTs on the same conditions that it frequently gives its non-political clients, according to FEC Chair Allen Dickerson. According to the Act and Commission rules, a commercially incorporated vendor may grant political groups credit on terms that are essentially the same as those that the vendor grants to non-political debtors. DataVault qualifies as a “commercial vendor” since it offers the same services to political groups as part of its regular and routine operation.
Nathaniel Bradley, CEO of DataVault, stated in a statement:
“We are thrilled that the FEC has unanimously approved the use of our proprietary DataVault technology by US political campaigns. In a larger context, we think For elections that want to be trustworthy and transparent in the future, blockchain technology is the way forward.”
How will this impact the election outcome?
DataVault’s legal team suggested in September that the company be permitted to deliver NFTs as keepsakes in a manner analogous to a campaign hat to anyone who donated to political parties. Additionally, the tokens would allow their owners to promote a cause “strictly voluntarily and without any pay.” According to DataVault, all expenses associated with the issuance of NFTs or transactions will be recorded as a “fundraising expenditure.”
The FEC (3) released a similar advisory opinion on blockchain tokens in 2019 and stated that some were “materially indistinguishable from traditional types of campaign souvenirs.” Omar Reyes, a candidate for congress, had “no” on his tokens in that situation. They had a “monetary worth” and motivated volunteers to work on the campaign. NFTs have occasionally been linked to international political campaigns. In South Korea, the campaign for Democratic Party candidate Lee Jae-Myung announced in January that it would provide donors NFTs featuring the politician and his vows.
