- Major crypto player Ripple has increased its political advocacy spending to $50 million.
- This donation has aimed to elect crypto-friendly candidates and potentially remove those against it.
- Ripple has criticized current SEC crypto regulations and has called for a new framework.
Ripple has significantly bolstered its support for pro-crypto political advocacy by contributing another $25 million to Fairshake, a prominent federal crypto super political action committee (PAC). This latest donation is in addition to the $25 million Ripple donated in 2023, bringing its total contributions to the PAC to $50 million.
Coinbase and Gemini Among Big Donors to Fairshake
Fairshake, which aims to support crypto-friendly Congressional candidates, has raised over $100 million from major industry players, including Coinbase, Gemini, Andreessen Horowitz, and ARK Invest. Ripple’s contributions represent a substantial portion of this funding, underscoring its commitment to influencing the political landscape in favor of cryptocurrency.
Is Ripple Copying FTX?
While Ripple’s significant contributions to Fairshake represent a notable example of crypto industry involvement in political advocacy, it’s essential to recognize that Ripple isn’t alone in this endeavor. Other major players, such as Sam Bankman-Fried (SBF) and his cryptocurrency exchange FTX, have also made substantial political donations.
Sponsored
However, SBF’s recent experience serves as a cautionary tale about the potential risks involved in such endeavors. In 2023, FTX donated $5.2 million to PACs and super PACs, marking one of the largest single-year contributions from a crypto company.
Fairshake’s Impact
The 2024 elections are seen as pivotal for the crypto industry, which seeks to elect candidates who support digital currencies and remove those who do not.
One notable example of Fairshake’s influence was its $10 million campaign against Congresswoman Katie Porter (D-Calif.), a known ally of Sen. Elizabeth Warren (D-Mass.). Porter’s Senate bid was thwarted, highlighting the PAC’s effectiveness.
Ripple Pours Millions into Pro-Crypto PAC
In a recent announcement, Ripple emphasized that its donations to Fairshake are part of a broader industry effort to advocate for policies that support financial innovation in the U.S. The company criticized the U.S. Securities and Exchange Commission (SEC) for its regulatory approach, stating that the SEC’s strategy of regulating crypto through enforcement has failed.
"Our contributions to Fairshake are just one of the many ways Ripple will actively invest in educating voters on the role crypto will play in the future and the dangers of the anti-crypto stance some policymakers are clinging to in Washington," stated Ripple CEO Brad Garlinghouse in a press statement.
Ripple called for the creation of a positive regulatory environment that will foster innovation in the crypto space.
"Ripple will not, and the crypto industry should not, keep quiet while unelected regulators actively seek to impede innovation and economic growth that millions of Americans utilize. The crypto industry intends to remain heavily invested in this effort until we see meaningful change."
Ripple’s ongoing battle with the SEC, which accused the company of violating federal securities laws in 2020, continues to shape its stance on regulatory issues. The company’s substantial contributions to Fairshake reflect its determination to advocate for a regulatory framework that supports the growth and innovation of the cryptocurrency industry in the United States.
On the Flipside
- Ripple’s significant financial contributions to Fairshake raise concerns about the influence of big corporations in political campaigns, with FTX being a prime example.
- FTX’s history raises concerns about whether Ripple’s increased political spending is a genuine effort to shape policy or a sign of currying political favor for potentially self-serving motives.
Why This Matters
This hefty donation underscores Ripple’s commitment to shaping the regulatory landscape surrounding cryptocurrency in the US. By funding pro-crypto candidates and lobbying against anti-crypto policies, Ripple hopes to secure an environment that fosters innovation and avoids stifling the burgeoning crypto industry.
For another angle on XRP’s status, see this piece on the SEC’s approval of Ethereum spot ETFs and the possibility for XRP next:
Ripple Hungry for XRP ETF as SEC Gives Ethereum the Go-Ahead
If you’re into cryptocurrency regulations, check out this article on the SEC’s recent challenges to Ripple’s financial document sealing:
SEC Fights to Keep Access to Ripple’s Files
