FEC weighs approval of bitcoin donations to political campaigns

The Federal Election Commission is weighing whether it should allow donors to contribute digital bitcoins to political campaigns.

The commission has until Oct. 28 to issue an advisory opinion on the matter after a conservative political action fund sought permission to accept and spend the virtual currency. Bitcoins exist only online but can be used to buy real-world goods and services, and are accepted by a growing number of Internet retailers. Proponents of allowing bitcoin say they expect it be in wide use during the 2014 cycle and argue political campaigns should be able to tap into the currency’s growing popularity. Approval from the FEC is no sure thing, as the currency has come under mounting scrutiny from federal regulators since its owners are anonymous, and there is no central managing authority.