The United States Federal Election Commission (FEC) has given its implicit consent for mining pools to donate to political campaigns.
In a memo posted on the FEC website on November 13, the agency mentions information about a meeting held on November 15. Based on the memo, the FEC has addressed a request filed by OsiaNetwork LLC who has been asking for the agency’s advice.
Filed on September 10, the company has been requesting for confirmation on “permissibility of OsiaNetwork’s business plan.” With very little data about the startup, it appears that the move may not progress.
OsiaNetwork’s request, which describes the business model, states that to “enable individuals to support federal political committees by volunteering the processing power of their internet enabled devices to mine cryptocurrencies.” Surprisingly, the FEC has replied.
The FEC responded by saying that “although the proposed cryptocurrency mining pool as described in the request is itself permissible under the Act and Commission regulations, the activities of the individuals do not fall within the volunteer internet activities exception, and would therefore result in contributions from them and from OsiaNetwork to the participating political committees.”
OsiaNetwork is unable to give contributions to the campaigns while this may prevent the establishment of a long-term relationship with the pool it sets up. The request also cites the terms to their desired donations saying “as long as each of those political committees is a client of OsiaNetwork.”
The election agency’s decision to prohibit this type of relationship and allow private donations can subsequently give more flexibility for individuals who are planning on donating digital currency through mining pools. OsiaNetwork’s goal to generate a profit from the strategy revolves around launching itself as a stable actor for mining pools. However, these transactions may also prove effective through a decentralized system.