US Lawmakers Looking at Provisions for Making Political Donations Through Crypto Mining

US Federal Election Commission (FEC) has drafted a new proposal which aims to regulate political donations through Crypto Mining power. The US deputy attorney general has also called for crypto regulations in the country for international cooperation. The main aim behind these initiatives is to regulate exchanges and ICOs and bring them under an umbrella of law to avoid cases of fraud and scams by Initial Coin Offerings (ICO).

During 87th Interpol general assembly, Rod Rosenstein, deputy attorney general, put forward the proposal for bringing crypto regulations with the help of international corporations. He asked the regulators to “work together to make clear that the rule of law can reach the entire blockchain.” In his speech at the assembly, Mr. Rosenstein emphasized that regulations are the only way forward to avoid cryptocurrencies from being “abused by criminals, terrorist financiers or sanctions evaders.”

He also emphasized on the need of ICOs to be brought under the scanner, an excerpt from the news, 

“fraudsters use the lure of coin offerings and the promise of new currencies to bilk unsuspecting investors, promote scams and engage in market manipulation.”

FEC Proposes Political Donations Through Crypto Mining

The U.S Federal Election Commission has filed a draft proposing to make political donations in the form of crypto mining power, ‘“Permissible.” The said proposal was a response to Osianetwork LLC, which on November 13 asked whether an individual can support a political party by devoting computational power to mine virtual currencies. The FEC would vote for the draft on 19 December 2018. However, the commision made it clear that even if the proposal gets the majority vote, it would “not fall within the volunteer internet activities exception, and would result in contributions from both the individuals and the Osianetwork to the participating political committees.”

US Legislators Demand for Tougher Regulations on Crypto Firms From States

Greg Bordenkircher, the chief litigator of the Alabama Securities Commission, states that “about 20 percent of all the active cease-and-desists” in the USA. The reason for barring these firms has been attributed to the fraudulent nature of these firms promising impractical returns on its cryptocurrency product. He further proclaims that nine such firms have already been asked to shut down and another 20-22 firms are on the watchlist.

Bordenkircher commended the work done by U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission. He also emphasized the need for such regulations in helping people understand the new technology better and forbid scamster from creating a sense of insecurity among the masses.