The problem is that bitcoins are pseudo-anonymous and political donations are striclty controlled.

If you make bitcoin the official currency of the world then you've got my vote!

It will never happen. Not because its not a good idea, but rather every dollar must be matched with every donor. We dont want undue foreign influence in the political process. Plus it would take a candidate ages to convert the btc into cash. Think about it.  A candidate accepts $1,000,000 and it would take 1000 days to convert the money. By then the election will be over.

The following might be a legal procedure for accepting non-anonymous Bitcoin donations:

1. Donor registers with identity documentation and access to password protected account
2. Donor's Bitcoin address gets verified with a random small 0.000000xx amount of Bitcoin sent to his address and he needs to reply verify amount received by accessing the donor account created in number 1 above.
3. Donor now first send donations through the Bitcoin address verified in no. 2 above to the party registered with in no. 1

This procedure allows for donations that is not anonymous at all, fully declarable, reportable and auditable.

Oh great thanks for telling me but its a bit late. What am I todo about this JoelKatz for President tatoo?

So if I donated lemonade (a good) under reportable identity in South Carolina, the donation in kind (not US$ currency) will not comply with campaign finance, because if I donated bitcoin (a digital cryptography good which can also be used as a commodity currency, or secure login, or secure message sending, or other cryptographic applications) it does not comply with campaign finance law?  When will people get over the novelty of Bitcoin, and realise that a commodity currency needs work, to the full value of the commodity used as an electronic commodity currency, to manufacture.  This is unlike tokens/script/vouchers/promissary notes that does not require work, to the full value of the paper/electronic promise, to be used as a currency.

The raw material for Bitcoins is random 0's and 1's.  A bitcoin is a very special arrangement of these 0's and 1's requiring quite an effort in human effort, time and capital resource effort.  Bitcoins just not just require electricity to be made - it requires the sacrifice of very expensive capital processing power, human effort, maintenance and running costs, and many other production costs involved in digital good manufacturing.

A handmade paper card is worth much more in human effort, time and capital resource effort - than the waste paper it can be manufactured from.

No politician would take bitcoin.  It's a slap in the face to their financial overlords.  If they took BTC in defiance they, like Eliot Spitzer, would be suddenly busted and shamed for sexual shenanigans.

He would, if you told him it's making the government smaller.

To add to Tymothy's point, the ultimate irony here is that in order for it to be a violation of the FEC regs, the government would have to acknowledge it as MONEY, which given the streisand effect would formally legitimize BTC for world use.

Remember folks, the only thing prohibition achieves is
a) Higher prices
b) Only criminals use the prohibited item, since anyone using the prohibited item is a criminal