In a notice issued on December 15, the FEC stated that it was "permissible" for DataVault to send NFTs to political campaign contributors without violating rules on corporate contributions. DataVault will receive "reasonable compensation" for each NFT issued and will also track all tokens issued for its own records.
DataVault CEO Comments on FEC Approval of NFT Use in Political Campaigns
DataVault CEO Nathaniel Bradley has expressed his delight at the unanimous approval by the FEC of the company's patented DataVault platform for use in political campaigns in the US. Speaking to Cointelegraph, Bradley said: "We believe that blockchain technology represents the future for elections that seek to be trusted and transparent in their outcomes in the future." In September, DataVault's legal team proposed that the firm be allowed to send NFTs as souvenirs to individuals who contributed to political committees. The tokens would also give token holders the option to use them for promoting a campaign on a voluntary basis without compensation. Any fees from issuing NFTs or transactions would be reported as a "fundraising expenditure."
FEC Issues Similar Advisory Opinion on Blockchain Tokens in 2019
In 2019, the FEC issued a similar advisory opinion on using blockchain tokens in political campaigns. The commission stated that certain blockchain tokens were "materially indistinguishable from traditional campaign souvenirs." The tokens in question, issued by congressional candidate Omar Reyes, had "no monetary value" and were used as an incentive for volunteers to engage in campaign activities. NFTs have also been used in political campaigns globally, with the campaign of South Korean Democratic Party candidate Lee Jae-Myung announcing in January that it would issue NFTs showing images of the candidate and his campaign pledges to donors.
NFTs Offer Opportunities for Political Campaigns to Engage Supporters and Raise Funds
The use of non-fungible tokens (NFTs) in political campaigns offers opportunities for campaigns to engage supporters and raise funds in new and innovative ways. The recent approval by the US Federal Election Commission (FEC) for DataVault Holdings to use NFTs as a fundraising tool for political campaigns is a significant step forward in adopting this technology in the political sphere.
NFTs can be used to create unique digital assets that can be collected and traded, such as campaign souvenirs or special edition artwork. In the case of DataVault, the NFTs will be sent as souvenirs to individuals who contribute to political committees and will also give token holders the option to use them for promoting a campaign on a voluntary basis without compensation. This type of engagement can help to build a sense of community among supporters and encourage participation in a campaign.
