The co-founder of Ripple, Chris Larsen, has made a donation of XRP worth one million dollars. The recipient? US presidential candidate Kamala Harris, through her political committee Future Forward USA. This significant contribution highlights the rising sway of the cryptocurrency community within American politics, as both major parties are seeking endorsements from within the crypto sector.
The Crypto Community’s Impact on Politics
In an effort to galvanize support, Harris has sought to engage the crypto community by endorsing the Crypto4Harris initiative, while remaining relatively quiet about cryptocurrencies. As crypto donations become more prevalent and accepted, prominent figures like Larsen are using their financial resources to influence the discussion and shape policies.
SCOOP: @Ripple co-founder @chrislarsensf has made the first documented #crypto donation to @KamalaHarris.
According to the latest FEC filings, Larsen has contributed $1 million in $XRP to one of the major super PACs supporting Harris — Future Forward USA.@AppBreadcrumbs pic.twitter.com/XAYbUImpS5
— Eleanor Terrett (@EleanorTerrett) October 11, 2024
This donation could lead to significant ramifications as the involvement of blockchain and cryptocurrency companies in US politics continues to grow. The industry is largely advocating for more favorable regulations regarding digital assets, especially as the legal and regulatory landscape becomes increasingly complex in the United States. Larsen’s financial support and potential future contributions may be aimed at forging alliances and securing a voice in the formulation of future crypto policies.
Ripple and the SEC
Larsen’s generous contribution comes in light of a recent legal conflict involving Ripple and the United States Securities and Exchange Commission (SEC). The legal battle, which began in 2020, centers around whether XRP should be classified as a security. Despite ongoing proceedings, both parties have filed appeals following the initial trial outcome.
If deemed a security, XRP could set a significant precedent for the entire cryptocurrency sector. Thus, Larsen’s donation might be interpreted as an effort to attract influential politicians who could impact regulatory debates. The regulatory ambiguity surrounding crypto assets poses concerns for businesses and political figures alike.
Harris’s 2024 Campaign and Its Implications
Harris’s perspective on cryptocurrency and digital assets is likely to evolve throughout this election cycle. The role of crypto in political fundraising may expand, and she may benefit from this notable donation. Gaining support from the digital asset community could be a strategy to engage younger, more technology-focused voters.
Conversely, an increase in legal actions against Ripple could shine a light on the connection between politicians and crypto companies. Moreover, as regulators heighten their scrutiny of the crypto space, Harris’s links to such donations may attract both supporters and critics.
Featured image from UC Law San Francisco, chart from TradingView
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