Roll Call is reporting that "The commission approved bitcoin campaign contributions 6-0 Thursday in response to an advisory opinion request from the Make Your Laws PAC, which promotes direct citizen participation in the legislative process."

"Make Your Laws had asked the FEC for permission to collect bitcoin contributions no larger than $100 per election, per donor. It was not immediately clear whether, in giving the Make Your Laws PAC the green light, the FEC was approving only bitcoin donations capped at $100, or whether larger virtual contributions would be permitted."

"A campaign that collects bitcoins that then increase in value would enjoy a windfall, but the currency comes with risks as well. Created in 2009, bitcoins are privately issued outside the normal banking system and are transferred digitally among participating investors and merchants. In a recent Investor Alert, the Securities and Exchange Commission cites the risk of Ponzi schemes, unlicensed sellers and unsubstantiated promises of high returns in bitcoin transactions."

Read the full article by Eliza Newlin Carney on Roll Call