Updated at 2:49 p.m. ET

Stephen Colbert's bid to launch a super PAC is no laughing matter, especially now that the comedian has won approval to raise unlimited campaign cash to influence the 2012 elections.

The Federal Election Commission today voted 5-1 to approve Colbert's political action committee but with certain conditions. It gives him a shot at doing what political types such as Bush strategist Karl Rove and former Obama aide Bill Burton are already doing to finance TV ads -- even if they are parodies on The Colbert Report -- ahead of next year's elections.

Colbert, who played it straight during the commission hearing, yukked it up with a crowd outside the FEC. "We won," he said.

"Thank you for standing with me for freedom," Colbert said to cheers. "Today, we put liberty on layaway."

He joked that he wasn't making a statement about the evils of corporate America in campaigns, but wanted their money.

"I don't accept the status quo," Colbert joked, with a credit-card processing machine in hand. "I do accept Visa, Mastercard or American Express."

The commission's ruling narrowly interprets what the comedian and Viacom Inc., the parent company of Comedy Central, can do with Colbert's super PAC.

Colbert sought a so-called media exemption that would allow him to use airtime, staff and other resources from his show on campaign activities such as TV ads without having to disclose any of those expenses as in-kind contributions from Viacom.

In an advisory opinion adopted by the commission today, the FEC said "some of Viacom's activities would fall within the press exemption, others would not."

Specifically, any ad produced for and shown on Colbert's program would fall within the exemption and the costs incurred don't have to be reported. But those Viacom-produced ads can't be shown on other shows or networks, unless their costs are disclosed.

The FEC also said that the parent company's administration and operation of the Colbert PAC would have to be reported "because these activities are not legitimate press functions."

While Colbert's super PAC started out as a parody of GOP presidential hopeful Tim Pawlenty, it raised a real concern from watchdogs such as Democracy 21 and the Campaign Legal Center.

At issue is how corporations use their money for politics, stemming from a Supreme Court ruling last year that opened the floodgates to unlimited campaign funding by corporations, unions and wealthy individuals.

Democracy 21 and Campaign Legal Center argued Colbert's super PAC could lead to a "radical evisceration" of campaign finance rules and the blurring of lines between politics and media.

For example, the watchdogs contend that politicians who appear on TV -- such as former Arkansas governor Mike Huckabee and ex-GOP vice presidential nominee Sarah Palin, who now appear on Fox News -- could use the resources of their networks to help their own political action committee.

Fred Wertheimer, president of Democracy 21, praised the "very narrow" ruling.

"In the course of dramatizing the campaign finance law's problems in the way that Mr. Colbert dramatizes all problems, he almost opened up serious disclosure loopholes in campaign finance law," Wertheimer said.

Tara Malloy of the Campaign Legal Center said the watchdog groups "wanted to prevent media companies from secretly subsidizing their commentators' PACs under the guise of the media exemption."

Craig Holman, government affairs lobbyist with Public Citizen, said that "reason...more or less prevailed."

Colbert was represented before the FEC by Trevor Potter, a campaign finance expert and former commission chairman. As president of the Campaign Legal Center, Potter recused himself from the group's dealings on the Colbert case.

By the way, the slogan for Colbert's super PAC: "Making a better tomorrow, tomorrow." He tweeted before his FEC appearance that he'd reveal PAC stands for "Plastic And/Or Cash."