Texas Congressman to accept campaign donations in bitcoin

While the Federal Election Commission (FEC) is yet to spell out its stand on bitcoin donations, at least one prominent US senate candidate has started accepting donations via Bitcoin, leaving a number of fundraising experts wondering how the FEC would react.

During the commission's hearing of a proposal for allowing candidates to accept Bitcoins last November, there were concerns among commissioners about campaigns collecting the personal data of the donors.

The only public part of the transactions involving bit coin is the parties' bitcoin addresses. The hearing came to an end with commissioners deadlocked over whether campaigns could accept Bitcoin donations.

Despite the uncertainty, Texas Rep Steve Stockman (R), who was in New York this week for the opening of the NYC Bitcoin Center told Business Insider he wanted to "promote Bitcoin" and was now accepting donations in the virtual currency, which had a fluctuating value, for his challenge to senator John Cornyn (R-Texas).

According to commentators, how those donations would be reflected on his next quarterly FEC filing remained to be seen.

Stockman is challenging Republican incumbent senator John Cornyn, whose reelection campaign had so far raised $7 million as against Stockman's $32,000.

However, according to commentators, accepting bitcoins would not likely help Stockman bolster his war chest.

According to Michael Lindenberger of The Dallas Morning News, the decision would likely not yield a windfall that would help Stockman keep pace with Cornyn, a two-term incumbent. But it reinforced his message and appeals to his base supporters' distrust of the Federal Reserve system, he added.

Stockman said at the Bitcoin Center NYC, he really thought digital currency was more about freedom... Freedom to choose what to do with your money and freedom to keep your money without people influencing it through printing money or through regulation.