Why has Ripple gained attention in the English news
Ripple, the blockchain company behind XRP, has recently made headlines for its political involvement and donations to Democratic presidential candidate Kamala Harris. This comes as a surprise considering Ripple’s historical neutrality in U.S. elections and its rocky relationship with U.S. regulators, particularly the SEC. However, these moves by Ripple may be part of a larger strategy to secure approval for an XRP ETF and navigate its legal battle with the SEC.
Ripple’s CEO, Brad Garlinghouse, praised Harris for her approach to digital assets during the D.C. Fintech Week event. This endorsement is notable considering Ripple’s previous legal troubles with the SEC under President Biden’s administration. Chris Larsen, Ripple’s co-founder, also made significant donations to Harris’ campaign, totaling $11 million in XRP. This surprised many in the industry, as some see former President Trump as more supportive of cryptocurrencies.
Garlinghouse defended Larsen’s donations, emphasizing that Ripple encourages its employees to support candidates they believe are best for the country, regardless of political party. He believes that the upcoming 2024 election is crucial for the future of the crypto industry and that either a Harris or Trump win would be an improvement over the current administration’s approach.
Ripple’s relationship with Democrats, particularly the SEC, has been challenging. The SEC filed a $1.3 billion lawsuit against Ripple in 2020, accusing the company of selling unregistered securities in the form of XRP. While Ripple had a partial victory in July 2023 when a judge ruled that XRP sales to retail investors did not qualify as securities, the SEC continues to pursue the case. The regulator sought a $2 billion fine in the latest verdict in August 2024 but was awarded a much smaller $125 million penalty. Ripple sees this as a victory, but the SEC’s ongoing appeal creates uncertainty.
Ripple’s recent political moves, including Stuart Alderoty’s donation to Trump’s campaign in June 2024, have been seen as unconventional. However, they may be part of a strategy to navigate the uncertain political landscape and improve the chances of securing approval for an XRP ETF. The approval of an 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 and mainstream way, potentially driving up the price and liquidity of XRP.
With the current resistance from the SEC, Ripple’s donations to both Harris and Trump may be a strategic hedge. This positions the company to benefit from either candidate’s favor and increases the likelihood of securing approval for their long-awaited XRP ETF, regardless of the election outcome.
