FEC takes first steps to regulate gift cards as political donation tool after Act Blue probes

The Federal Election Commission is taking the first steps to regulate gift cards as a political donation tool after Democratic fundraising platform Act Blue has come under scrutiny for concerns about illicit contributions. 

These concerns sparked a congressional investigation earlier this year to probe whether the platform, which processed more than a billion dollars during the 2024 campaign season for Democratic and progressive causes, processed fraudulent donations and other contributions from illicit sources abroad in Iran, Russia, China and Venezuela. 

Earlier this week, the FEC sought public comment about a petition from Texas Attorney General Ken Paxton for amendments for two federal rules that would require political contributions to be tied to a specific identity in order to avoid gift card fraud. 

Paxton's own investigation into the fundraising platform found evidence of potentially fraudulent donations through straw donors. As a result of that probe, Act Blue implemented a new policy to require CVV numbers for credit cards used on its platform.