In a significant move blending politics and cryptocurrency, Ripple co-founder Chris Larsen has donated $10 million in XRP to support Vice President Kamala Harris’s presidential campaign. This substantial contribution underscores Larsen’s belief in Harris as a proponent of technological innovation and a favorable figure for the cryptocurrency landscape in the United States.
A Closer Look at the Donation
On October 21, 2024, Larsen confirmed the donation through a post on X (formerly Twitter), stating, “It’s time for the Democrats to have a new approach to tech innovation, including crypto. I believe Kamala Harris will ensure that American technology dominates the world, which is why I’m donating $10M in XRP in support of her.” This latest donation follows an earlier contribution of $1 million made in August to the political action committee Future Forward USA, which supports Harris’s campaign.
The timing of this donation is crucial, given that Harris’s campaign raised a staggering $100 million in September, with Larsen among the high-profile contributors. Other notable donations included $10 million from billionaire Dustin Moskovitz, $9 million from the nonprofit Evidence for Impact, and $5 million from Illinois Governor JB Pritzker.
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Chris Larsen’s Political Engagement
Larsen’s commitment to supporting Harris extends beyond financial contributions. He publicly endorsed her candidacy in September and has been actively involved in political funding related to her campaign. Earlier this election cycle, he contributed the maximum personal amount of $6,600, along with a notable $100,000 donation to the Harris Action Fund. With a net worth of approximately $3.1 billion, largely tied to his holdings in XRP and Ripple, Larsen’s financial support holds considerable weight in the political arena.
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Ripple’s Ongoing Legal Battle with the SEC
While Larsen’s hefty donation aims to bolster Harris’s campaign, the broader cryptocurrency community has exhibited mixed feelings towards her candidacy, largely due to the regulatory stance of the Biden/Harris administration. Over the past four years, this administration has cultivated a regulation by enforcement approach that many in the crypto industry find hostile.
The backdrop to this tension includes the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). The SEC initially filed a lawsuit against Ripple and its executives, including Larsen and CEO Brad Garlinghouse, in December 2020, claiming that XRP was a security and that Ripple had engaged in securities violations.
In a landmark ruling in July 2023, a judge ruled that XRP should not be classified as a security. This ruling marked a pivotal moment for Ripple, resulting in the company agreeing to a $125 million settlement with the SEC. In October 2023, the SEC dropped its case against Larsen and Garlinghouse. However, the SEC has since filed an appeal against the court’s ruling regarding XRP sales, and Ripple has launched a cross-appeal, prolonging the uncertainty surrounding the status of XRP.
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Conclusion: The Intersection of Politics and Cryptocurrency
Chris Larsen’s substantial donation to Kamala Harris’s campaign represents a bold intersection of politics and cryptocurrency, reflecting both his vision for the future of technology in America and his commitment to shaping the regulatory landscape for digital assets. As the Ripple case against the SEC continues to evolve, the implications of this political support could have lasting effects on both Harris’s candidacy and the broader crypto ecosystem.
As the election draws nearer, the crypto community will be closely monitoring how these developments unfold, especially in light of the mixed sentiments surrounding the current administration’s approach to cryptocurrency regulation. Whether Larsen’s financial backing can translate into a favorable environment for Ripple and XRP remains to be seen, but one thing is clear: the relationship between politics and cryptocurrency is becoming increasingly intertwined.
