Crypto Next Election Donation: The campaign for the presidential election in the United States in 2024 has seen a significant rise in the use of cryptocurrency donations. A month ago, Donald Trump made history by becoming the first “major party Presidential nominee” to accept this solicitation for financial support. Using the Coinbase Commerce platform, he established a cryptocurrency fundraising page that enabled contributors who were eligible to make contributions.
While this is going on, it has been reported that President Joe Biden’s re-election campaign staff is also contemplating taking cryptocurrency payments for his campaign. Both candidates are keen to demonstrate their awareness of issues linked to cryptocurrencies and to show their support for an industry currently dissatisfied with how the United States approaches regulatory enforcement.
President Trump was anti-cryptocurrency not so long ago. He made it quite apparent that he disapproved of them in 2019, referring to them as “not money” and criticizing their volatility and lack of actual worth. He also argued that these assets might be utilized for illicit operations such as the distribution of drugs. The question is, why is he now on board with it? Experts from various sectors outlined why these candidates are getting on the cryptocurrency donation bandwagon.
Crypto Donations Are Private and Modern
According to Deborah Perry Piscione, a best-selling author for the New York Times, this action is comparable to President Barack Obama’s use of social media to gather funds during his first campaign. When she was 78 years old, she asserted that using cryptocurrency to make political contributions was fashionable. She also mentioned that Crypto Next Election Donation have privacy benefits; nonetheless, campaigns must publish donor information for contributions amounting to more than a particular threshold.
She brought up the fact that Trump would be known as the first presidential candidate to take cryptocurrency money, even though legislation around crypto donations is still being revised. It was mentioned by Piscione, who is a co-author of the book “Employment Is Dead: How Disruptive Technologies Are Revolutionizing the Way We Work” (HBR January 28, 2025), that she advised another presidential contender and urged them to take cryptocurrency donations as well.
Crypto lets Politicians Reach Diverse Voters
In the meantime, Jared Grey, the Chief Executive Officer of Sushi Labs, noted that cryptocurrency enables politicians. To communicate with a large and expanding group of people from various backgrounds. It also makes the fundraising process more transparent. Grey stated that lawmakers know this cutting-edge technology’s influence on the future of payments and support—using cryptocurrencies for fundraising purposes.
Furthermore, when contributors make their contributions directly in cryptocurrency, they may be able to. To avoid paying capital gains tax on Bitcoin. According to Michal “Mehow” Pospieszalski, CEO of MatterFi, cryptocurrency donors in the United States do not have to pay. Capital gains taxes on contributions to organizations under the 501(c)(3) category. They would be subject to this tax if they sold the cryptocurrency and donated the revenues.
Tax Breaks and Compliance Issues
According to Shambo Consulting CEO Steffo Shambo, bitcoin donations are taxed similarly to property or stock gifts. Donors who have kept a Crypto Next Election Donation for over a year can deduct it. It is fair market value without paying capital gains tax. Early crypto investors may reap significant benefits from this.
Donations made with cryptocurrency, however, may provide additional reporting and accounting hurdles. The campaign as it strives to adhere to campaign finance regulations. Donors and campaigns should seek tax experts’ advice and keep meticulous records of all financial dealings in this emerging field.
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