A million dollar worth of XRP has just been donated by the co-founder of Ripple, Chris Larsen. The benefactor? The US presidential candidate Kamala Harris, through her political committee Future Forward USA. This massive contribution reflects the growing influence that the crypto community is gaining in American politics as both parties move in for crypto endorsements.
The Influence Of The Crypto Community In Politics
In an attempt to rally their support, Harris has made efforts to involve the crypto community by embracing the Crypto4Harris movement, while remaining somewhat silent on the cryptocurrencies. Crypto donations are growing as it is gaining acceptance and regularization, with heavy hitters such as Larsen utilizing their bank balances as a way of forming the debate and policy.
🚨SCOOP: @Ripple co-founder @chrislarsensf has made the first documented #crypto donation to @KamalaHarris.
According to new FEC filings, Larsen donated $1 million in $XRP to one of the first super PACs supporting Harris — Future Forward USA.@AppBreadcrumbs pic.twitter.com/XAYbUImpS5
— Eleanor Terrett (@EleanorTerrett) October 11, 2024
The donation could have some bigger implications as blockchain and crypto company's hand and involvement in US politics are growing. The industry is largely calling for more favorable regulations for digital assets, particularly as the struggle over legal and regulatory battles has been building up in the United States. Larsen's contributions and other future ones are likely about building alliances and gaining a seat at the table when shaping future crypto policy, not checks.
Ripple Vs. SEC
Larsen's generosity develops following a recent legal dispute between Ripple and the United States Securities and Exchange Commission (SEC). The legal showdown erupted in 2020 over the consideration of whether XRP is a security. Even though their case has been ongoing, both sides have already filed appeals after the initial trial ruling.
If XRP turns out to be a security, then it can become a precedent for the entire crypto world. Therefore, Larsen's donation could be seen as a honeypot aimed at power politicians who may determine the future of regulatory debates. The regulatory uncertainty about crypto assets has become an issue of concern to businesses as much as to political leaders.
The Effects On Harris And Her 2024 Candidacy
Harris's attitude to cryptocurrency, digital assets, and technology as a whole will surely change as she progresses during this election. Perhaps the role of crypto in political fundraising will grow, and she could capitalize on this specific donation. A general support from the digital asset community could be a way to reach out to those younger, more tech-savvy voters.
At the same time, more legal action against Ripple would bring attention to the relationship between politicians and crypto firms. As well, as regulators begin to zero in on the crypto world, Harris's association with such contributions is bound to bring both support from fans and criticism from doubters.
Featured image from UC Law San Francisco, chart from TradingView
