Non-fungible tokens have been a huge story in 2021 and the trend continues to see new versions hitting the market and rising valuations for many “blue chip” names in the space. Now the policy could intersect NFTs according to a report by CoinTelegraph.
What happened: First row, a market that helps progressive organizations, said it is partnering with the Texas Democratic Party on a pilot NFT launch program, which will raise funds for candidates and causes.
“We look forward to continuing to transform powerful and exclusive behind-the-scenes moments into digital assets that help fuel progressive goals,” Front Row co-founder Parker Butterworth noted.
Front Row created NFTs based on key moments in progressive movement. An NFT includes digital renderings of Democratic state lawmakers from 2021 and a poster of their arrest warrants for fleeing the state after trying to block passage of the SB-1 ballot bill in Texas, said the Front Row blog.
“NFTs will become a powerful addition to any political fundraising effort and launching our market 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 will donate a portion of the NFT proceeds to compensate.
Texas is the starting point for Front Row, but plans call for national expansion to come.
Related Link: Coinbase To Take On Opensea With NFT Platform: What Investors Need To Know
Why this is important: Front Row said the funds will go to political groups and candidates, but did not share details on how it would comply with campaign finance laws.
Applicants for federal office cannot receive more than $ 5,800 from the sale of an NFT, according to CoinTelegraph.
Since NFTs are generally assessed by Ethereum (CRYPTO: ETH), which fluctuates over time, the selling process could be complicated and see pressure from the SEC and Republicans to seek to shut down their competitors for contributions.
Many candidates for public office are looking for ways to accept cryptocurrency donations, which could be a tactic to gain a large following among young voters.
While the US Congress has pushed for rules and regulations against cryptocurrency, NFTs have so far been a silent topic. NFTs used to raise political funds could quickly put them in the spotlight in a battle across political lines.