As the US presidential election draws near, the cryptocurrency industry has taken center stage in political discussions. Key figures from the blockchain payments company Ripple are showing divided support for the leading candidates: Vice President Kamala Harris and former President Donald Trump. This division emerges amidst ongoing debates over regulatory frameworks, particularly concerning the US Securities and Exchange Commission (SEC) and its enforcement actions against the crypto sector.
Ripple Co-Founder Larsen’s $1 Million XRP Donation
Christian Larsen, a co-founder of Ripple, has made significant headlines by making the first recorded crypto donation to Kamala Harris’s campaign. He contributed a remarkable $1 million in XRP to a prominent super political action committee (PAC) supporting her candidacy. This donation was unveiled through recent filings with the Federal Election Commission (FEC), as reported by FOX journalist Eleanor Terret.
Larsen’s contribution is seen as a strategic endorsement of Harris, who has been vocal about the need for supportive measures to nurture the digital asset ecosystem’s growth. This political maneuver follows comments from Ripple CEO Brad Garlinghouse, who has been critical of the SEC’s ongoing legal actions against the company.
The SEC recently appealed a favorable ruling from Judge Analisa Torres, which stated that XRP, when sold on public exchanges, does not qualify as a security under existing laws. In response, Ripple announced plans to file a cross-appeal against the SEC, escalating the ongoing legal conflict.
Is the Crypto Community Divided?
Ripple CEO Brad Garlinghouse has been outspoken about the SEC’s actions, asserting, “If Gensler and the SEC cared about the rule of law, they would accept their loss and move on.” Garlinghouse argues that the regulator is more interested in causing disruption than providing clarity for industry players, warning that the agency’s actions could stifle US innovation in the technology sector.
While Larsen has aligned himself with Harris, the political contributions from the crypto community are diverse. Notable digital asset investor Gary Cardone, along with the Winklevoss twins, founders of the Gemini exchange, and Kraken co-founder Jesse Powell, have publicly expressed their support for Donald Trump.
Trump’s campaign positions him as a pro-crypto candidate, with promises to elevate the United States as a global leader in the cryptocurrency arena. The former President and Republican candidate has criticized regulatory overreach, stating, “They want to choke you, and we are not going to let that happen.” Trump has also pledged to replace SEC Chairman Gary Gensler upon a potential return to the White House, further indicating his commitment to fostering a favorable environment for the crypto industry.
Market Reactions and Future Implications
At the time of writing, XRP was trading at $0.5379, showing no change from Thursday’s trading session. The ongoing legal battles and political endorsements could have significant implications for the crypto market’s future trajectory.
The unfolding events highlight the growing intersection of politics and cryptocurrency, with industry leaders actively participating in shaping the political landscape. As the election approaches, the crypto community continues to watch closely, anticipating the potential policy shifts that could influence the sector’s growth and regulatory environment.
