KEY POINTS
- FEC filings previously showed that Larsen donated $1M in $XRP to a pro-Harris super PAC
- Larsen said he believes Harris will ensure that US tech will dominate the world
- Garlinghouse came to Larsen's defense, saying he respect his colleague's presidential choice
The cryptocurrency community is on fire after Ripple co-founder Chris Larsen revealed Monday that he has donated another $10 million XRP tokens to support the campaign of Vice President Kamala Harris.
Larsen's latest move came about a week after Federal Election Commission (FEC) filings showed that the crypto executive donated $1 million in XRP tokens to the Future Forward super PAC, which backs the Democratic presidential nominee.
Larsen Makes His Views Clear
The executive chairman of Ripple, which is currently grappling with the U.S. Securities and Exchange Commission (SEC) in a lawsuit initiated by the financial regulator four years ago, said he believes Harris "will ensure that American technology dominates the world."
It's time for the Democrats to have a new approach to tech innovation, including crypto. I believe @KamalaHarris will ensure that American technology dominates the world, which is why I’m donating $10M in XRP in support of her. https://t.co/vb9KJA87JK
— Chris Larsen (@chrislarsensf) October 21, 2024
"It's time for the Democrats to have a new approach to tech innovation, including crypto," Larsen said, seemingly referring to earlier statements made by pro-crypto candidates from the Democratic Party regarding Kamala's supposed desire for a "reset" with the industry that's been hounded by the SEC under Chair Gary Gensler.
Ripple CEO Comes to Colleague's Defense
Shortly after Larsen revealed his huge donation to the Harris campaign, Ripple CEO Brad Garlinghouse took to the comments, saying he respects Larsen and everyone else's right to support "whomever they think is best to lead the U.S."
I respect Chris’ (and everyone’s!) right to support whomever they think is best to lead the U.S.
— Brad Garlinghouse (@bgarlinghouse) October 21, 2024
We need to immediately change course from this administration’s misguided war on crypto.
Ripple will continue to engage with both Democrats and Republicans in the final days of…
He went on to note that there is an urgent need to "change course" from the current administration's "misguided war on crypto." He promised that Ripple, the largest holder of the XRP token, will engage with both political parties to push for pro-crypto policies.
"It's not about party lines; it's about championing policies that drive blockchain and crypto innovation," he pointed out.
Crypto Community Blasts Larsen's 'Careless' Move
Several key figures in the crypto community raised concerns about Larsen's latest donation, and many crypto users, especially those who use the XRP token, criticized his presidential choice.
Trader Amonyx accused Larsen of "carelessly spending money without considering XRP investors and supporters." He wondered whether Larsen was "comfortable inside" with the choice he made. One user agreed, saying the crypto executive had "complete disregard for $XRP holders."
On the Chain podcast founder Chip said Harris could have easily called for Gensler to step down since she is currently in power, but she has chosen not to.
The Democrats had every chance to rethink their stance on crypto—but naturally, they didn’t.
— Chip – onthechain.io (@stephenchip) October 21, 2024
Harris just rolled out her official platform, and surprise, surprise—not a word about crypto.
And Warren? In her debate with John Deaton, she’s doubling down on her anti-crypto…
Venture capitalist and Bitcoiner Nic Carter called the donation "completely baffling," while crypto influencer Amelie said she hopes "there is a hidden twist in that action."
Crypto YouTuber Corey Costa said he feels bad for XRP investors, while crypto investor CryptoTank said Larsen's decision to go public about his support for Harris will be "a bad look" in the eyes of XRP holders who, mostly, have expressed frustration over Kamala's silence despite the SEC's crusade against XRP and the broader crypto industry.
Crypto lawyer James Murphy, popularly known in the community as MetaLawMan, raised an issue regarding how the Harris campaign will work around the donation. He pointed out that the campaign will presumably sell the donated XRP to convert the tokens into fiat.
"Will Harris clear that transaction with @GaryGensler? Will this trade impact the SEC's appeal in the @Ripple case?" he asked. The SEC filed an appeal in an attempt to overturn some provisions of a 2023 ruling in its lawsuit against Ripple.
What's Between the Lines?
While many crypto and XRP users are fuming over Larsen's announcement, others are theorizing about why the crypto magnate had to make the move.
One user suggested that Larsen may have picked the blue side "in lieu of a larger, corporate fine." In August, the SEC vs. Ripple lawsuit could have ended with a $125 million fine. However, the Wall Street regulator's recent appeal filing revives the case, and for some, Larsen's donation may be linked to the four-year-long legal scuffle.
For one user, Larsen made a "smart" move, choosing the businessman's way with a focus on "influence" over other matters.
$XRP Plummets Amid the News
The outrage on X over Larsen's donation seems to have affected XRP prices. The token plunged by 4% in the last 24 hours, as per data from CoinGecko. It is down by over 2% in the past week.
Around three weeks ago, the token's prices were faring much better, propelled by Bitwise's filing for a spot XRP exchange-traded fund (ETF) and excitement around the news.
