Why has Ripple become an object of curiosity
Ripple, the prominent blockchain company behind XRP, has recently made some surprising political moves that have raised questions about its motives and future plans. CEO Brad Garlinghouse has publicly praised Democratic presidential candidate Kamala Harris, a departure from Ripple’s historical neutrality in U.S. elections. This comes at a time when Ripple is facing a legal battle with the U.S. Securities and Exchange Commission (SEC) and considering the possibility of launching an XRP exchange-traded fund (ETF).
Ripple’s relationship with the Democratic Party, particularly the SEC, has been strained. The company faced a $1.3 billion lawsuit from the SEC in 2020, filed during President Biden’s administration, accusing Ripple of selling unregistered securities. While Ripple scored a partial victory in July 2023, the SEC is still pursuing the case and seeking a $2 billion fine. The recent verdict awarded the SEC a much smaller $125 million penalty, but the appeal process continues to create uncertainty.
So why has Ripple shifted its support towards Harris? Garlinghouse claims that it’s about pro-crypto policies rather than political party loyalty. He believes that the upcoming 2024 election is crucial for the future of the crypto industry and that both Harris and Trump would be an improvement over the Biden administration’s approach. However, many in the industry see Trump as more supportive of cryptocurrencies, making Ripple’s donations to Harris confusing to some.
Ripple’s recent political moves, including a $300,000 XRP donation to Trump’s campaign by Chief Legal Officer Stuart Alderoty, are far from ordinary. The broader crypto industry has been heavily backing Trump, with data showing that crypto companies have spent more on ads for Republicans than Democrats. This reflects the uncertainty surrounding the 2024 U.S. presidential election and its potential impact on the crypto industry.
Amidst all this, Ripple is eyeing the possibility of launching an XRP ETF. Bitwise and Canary Capital have already filed for XRP ETFs, and Ripple’s CEO believes it is “inevitable.” An approved XRP ETF would validate XRP as a legitimate financial asset and address the concerns raised by the SEC lawsuit. It would also allow Ripple to meet investor demand in a regulated, mainstream way, potentially driving up the price and liquidity of XRP.
Given the SEC’s resistance and the uncertain political landscape, Ripple’s donations to both Harris and Trump could be a strategic move to position the company for success regardless of the election outcome. By supporting both candidates, Ripple aims to secure approval for its XRP ETF and ensure it has a seat at the table in shaping the future of the crypto industry.
