The Bitcoin Foundation, a trade group, is urging the Federal Election Commission (FEC) to allow bitcoins to be used for federal political contributions.

The FEC is considering the issue in the context of a request from a political action committee, and is expected to make a decision by October 28.

"Various state and national-level campaigns are already accepting bitcoins, and they are well-suited to political contributions because of the transparent nature of Bitcoin transactions," said Jacob S. Farber, a lawyer with Perkins Coie who is representing the Bitcoin Foundation, which includes companies and other entrepreneurs in the Bitcoin industry. The foundation did not return a request for comment by deadline.

The Bitcoin Foundation has worked on regulatory issues such as the Fincen guidelines on virtual currency and regulatory actions by California and New York

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