Will Political Candidates Be Able To Sell NFTs To Raise Funds? We May Soon Find Out In Texas

Non-fungible tokens have been a huge story in 2021 and the trend continues to see new releases hit the market and a rising valuation for many “blue chip” names in the space. Now, politics could intersect with NFTs according to a report from CoinTelegraph.

What Happened: Front Row, a marketplace that helps progressive organizations, said it is partnering with the Texas Democratic Party on a pilot program launching NFTs, which will raise money for candidates and causes.

“We can’t wait to continue turning powerful, exclusive, behind-the-scenes moments into digital assets that help fuel progressive objectives,” Front Row co-founder Parker Butterworth said.

Front Row has minted NFTs based on key moments in the progressive movement. One NFT includes digital renderings of Democratic state legislators from 2021, and a poster of their arrest warrants for fleeing the state after attempting to block the passing of Texas voting bill SB-1, stated the Front Row blog.

“NFTs will become a powerful addition to any political fundraising effort and the launch of our marketplace will give Democrats across the country a fundraising advantage that its counterparts do not have,” said Butterworth.

Front Row will seek to be carbon-negative and donate a portion of the NFT proceeds to offset.

Texas is the starting point for Front Row, but plans see national expansion coming.

Related Link: Coinbase Set To Take On Opensea With NFT Platform: What Investors Need To Know 

Why It’s Important: Front Row said the funds will go towards political groups and candidates, but did not share details on how it would comply with campaign finance laws.

Candidates for federal office can not receive more than $5,800 from the sale of an NFT, according to CoinTelegraph.

Given NFTs are typically priced in Ethereum ETH/USD, which fluctuates over time, the sale process could be complicated and see pressure from the SEC and Republicans looking to shut down their competition getting contributions.

Many candidates for public office are seeking ways to accept donations in cryptocurrency, which could be a tactic to gain a strong following from younger voters.

While the U.S. Congress has pushed for rules and regulations against cryptocurrency, NFTs have so far remained a quiet topic. NFTs being used to raise political funds could quickly put them in the spotlight in a battle across political lines.

Photo by Pete Alexopoulos on Unsplash