Nandini Roy Choudhury, writer
Brief news
- Chris Larsen, co-founder of Ripple, has donated $1 million in XRP tokens to a super PAC supporting Vice President Kamala Harris, contrasting with the trend of crypto companies primarily backing Donald Trump’s campaign.
- Larsen believes Harris understands the innovation economy better than the current Biden administration and has contributed approximately $1.9 million to her campaign, including previous donations to various Democratic causes.
- Despite his support for Harris, Larsen faces skepticism from the cryptocurrency community regarding her policies, particularly in light of the SEC’s actions against Ripple and the industry’s overall preference for Republican candidates.
Detailed news
SAN FRANCISCO — Crypto companies and their executives have been contributing tens of millions of dollars to Donald Trump’s campaign for the presidency for several months. Chris Larsen is not among them.
Ripple’s co-founder and chairman recently donated $1 million in XRP tokens to Future Forward, a super PAC that is supporting Vice President Kamala Harris’ presidential campaign. XRP tokens are the proprietary currency that Ripple established in 2012.
Larsen, who has supported candidates from both parties in recent years, informed CNBC in an interview on Monday that his confidence in Harris stems from discussions with individuals within the campaign and his observations of the vice president since she assumed the lead position on the ticket in July.
Harris’s origin from the Bay Area is advantageous.
“She has acquaintances who have been immersed in the innovation economy throughout her entire life,” Larsen stated. “I believe she comprehends it fundamentally, unlike the Biden administration, which seemingly overlooked or failed to connect the empowerment of workers with the necessity of having American leaders excel in their respective industries.”
Larsen’s admiration for the Democratic nominee is not recent. In February, he made the maximum personal donation of $6,600 to Harris, which would encompass both the primary and general election, around five months before to her nomination as the Democratic presidential candidate, as indicated by FEC records. Simultaneously, he donated $100,000 to the Harris Action Fund PAC.
Larsen has contributed around $1.9 million to Harris’ campaign, both personally and via PACs, as per FEC statistics collated by crypto market and blockchain researcher James Delmore and independently corroborated by CNBC.
Larsen, 64, possesses a net worth of $3.1 billion, as reported by Forbes, largely derived from his ownership of XRP and his participation in Ripple, a provider of blockchain technology for financial services firms.
He is involved in a sector that has recently gained prominence in political fundraising, predominantly in support of Republicans. According to a recent analysis by the nonprofit watchdog organization Public Citizen, almost fifty percent of the corporate funding for the election has been from the cryptocurrency sector.
The total was increased through a combination of contributions, with Coinbase, Ripple, and venture capital company Andreessen Horowitz comprising the majority of the corporate gifts. The industry has generated around 13 times the revenue it received in the last presidential election year.
Nearly two-thirds of cryptocurrency donations have been allocated to either supporting Republicans or opposing Democrats, according per Delmore’s analysis of FEC data. According to an FEC filing, Trump has obtained over $4 million in virtual tokens, and in July, the former president delivered a keynote address at a significant bitcoin conference in Nashville, Tennessee.
‘A more pragmatic approach’
Larsen’s recent donations comprise $1 million to Democratic Pennsylvania Governor Josh Shapiro in December and about $7,000 in February to John Deaton, the Massachusetts Republican challenging Democratic Senator Elizabeth Warren, a prominent critic of cryptocurrency. In 2022, he provided $250,000 to the Nancy Pelosi Victory Fund and contributed to a pro-Biden PAC in 2020.
Larsen expressed to CNBC his strong confidence that Harris will implement a more pragmatic approach and provide clear regulations for the crypto business, unlike the present circumstances under Gary Gensler’s leadership at the SEC. Gensler’s overt antagonism towards a significant portion of the cryptocurrency sector and his vigorous enforcement actions against firms such as Ripple are primary factors for many inside the industry to express their support for Trump.
In January, Ripple CEO Brad Garlinghouse, a contributor to both political parties, referred to Gensler as a “political liability.”
Larsen stated, “What we have experienced thus far resembles a deliberate chaos orchestrated by Gensler to undermine the domestic industry.” This has solely strengthened dubious international operations. “It is utterly illogical,” he stated, asserting that “Gensler is likely the most unpopular individual in Washington, D.C.”
In June, Ripple’s legal head stated that the business had expended more than $100 million on litigation to contest civil accusations filed by the SEC. In 2020, before to Biden’s inauguration, the SEC charged Ripple, Garlinghouse, and Larsen with breaching securities laws by functioning as unregistered brokers of digital currency tokens, which the SEC classifies as securities. The SEC subsequently dropped the accusations against the two Ripple officials, and the firm has refuted allegations of violating securities laws. They are currently engaged in ongoing litigation.
This month, the government submitted a notice of appeal in its protracted action against Ripple.
Ripple has donated around $50 million to the pro-crypto super PAC Fairshake, which has been supporting politicians across all positions and political affiliations.
Harris has been acquiring traction within the cryptocurrency community.
Two days following Biden’s withdrawal from the campaign, Marvin Ammori, legal head of the decentralized exchange Uniswap, contributed funds to the Harris Action Fund. Uniswap is contending allegations of violating U.S. securities regulations.
Anthony Scaramucci of Skybridge Capital, who served as White House communications director for 11 days under Trump, has contributed over $36,000 to two PACs endorsing the Democratic nominee. Scaramucci states that he is part of a coalition of cryptocurrency proponents collaborating with Harris to formulate her campaign’s ideas on digital assets and to assist the vice president in differentiating the Democrats from Senator Warren.
Additionally, venture capitalist Ben Horowitz possesses a substantial portfolio of cryptocurrency enterprises. In July, the co-founder of Andreessen Horowitz and his partner, Marc Andreessen, announced their intention to make substantial contributions to PACs endorsing Trump’s presidential campaign, citing his perceived support for the “little tech agenda.”
At that time, Biden was the nominee. By early October, Horowitz seemed to have experienced a shift of perspective. He informed the staff at his company that he would be making a “substantial” personal contribution to Harris’ electoral campaign. Horowitz stated that he and his wife, Felicia, “have known Vice President Harris for over a decade, and she has been a significant friend to both of us throughout that period.”
In late September, a few weeks prior, Harris acknowledged Bitcoin in a public address.
“We will promote innovative technologies such as AI and digital assets while safeguarding our consumers and investors,” she stated during a $27 million fundraising event in New York.
On Monday, the Harris campaign released their study titled “Opportunity Agenda for Black Men.” The strategy expressly outlines the establishment of a framework for bitcoin in the U.S. aimed at protecting such assets. The campaign reported that over 20% of Black Americans now or have possessed digital currency.
Notwithstanding Larsen’s history of contributions to Democrats, he faced criticism on social media following the disclosure of his most recent donation by CNBC on Friday.
Delmore stated that the Ripple community, along with the broader cryptocurrency community, has considerable doubt over Kamala’s campaign and the policies she may implement, mirroring prevalent internet views.
Larsen dismissed the criticism, stating that he disregards social media.
Source : CNBC News
