EFF Suspends Bitcoin Donations
The Electronic Frontier Foundation stops accepting Bitcoin due to legal uncertainty, highlighting the regulatory gray zone of 2011.
On June 20, 2011, the Electronic Frontier Foundation (EFF), a leading digital rights non-profit, announced it would indefinitely suspend Bitcoin donations. The EFF had been an early adopter, accepting crypto donations to support its work in privacy and free speech. However, the organization cited a lack of legal clarity regarding virtual currencies, specifically fearing that accepting Bitcoin could implicate them in money laundering regulations or violate the Stamp Payments Act of 1862 (a Civil War-era law prohibiting private currency).
This decision was a significant blow to Bitcoin's morale. The EFF was seen as an ideological ally to the cypherpunk movement; their retreat suggested that the legal risks of cryptocurrency were becoming too toxic even for organizations dedicated to pushing boundaries. The move legitimized the narrative that Bitcoin existed in a 'legal vacuum' that could endanger compliant entities. The EFF stated they would not return the donated bitcoins to donors (due to anonymity) but would instead send them to the 'Bitcoin Faucet' to keep them in circulation.
The suspension lasted nearly two years. In May 2013, the EFF reversed its stance and resumed accepting Bitcoin, acknowledging that the regulatory landscape had clarified (via FinCEN guidance) and that the benefits of censorship-resistant funding outweighed the risks. This vacillation by a major NGO serves as a historical barometer for the normalization of Bitcoin: too risky in 2011, acceptable by 2013.
Key Sources: SiliconAngle: EFF Ditches Bitcoin | The Next Web: EFF Drops Donations