- May 29, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Ripple Labs announced today a $25 million contribution to Fairshake, a federal super PAC committed to promoting pro-crypto political candidates with focus on the US presidential election. This contribution marks the second $25 million donation by Ripple to Fairshake, cumulatively making it the super PAC’s largest donor with a total of $50 million invested in the last two years. This financial commitment is part of an industry-wide push to ensure that cryptocurrency and blockchain innovation become central issues in the upcoming electoral cycle.
Ripple Champions Crypto-Friendly US Policy
Fairshake, which is funded by some of the biggest names in the cryptocurrency industry, plays a pivotal role in supporting Congressional candidates from both major political parties who advocate for laws that encourage crypto and technological innovation. According to Fairshake, Ripple’s contributions have significantly increased the super PAC’s financial arsenal, bringing its total funds to over $110 million.
Ripple CEO Brad Garlinghouse emphasized the strategic importance of these contributions: “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.”
Garlinghouse highlighted that Ripple’s proactive funding approach aims to counteract the resistance from certain policymakers and regulators who have not yet aligned with the evolving digital currency landscape. He added, “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.”
This political contribution strategy by Ripple comes at a time when the regulatory environment for cryptocurrencies in the US remains complex and often contentious. Ripple itself has been embroiled in a legal battle with the Securities and Exchange Commission (SEC) since December 2020. The SEC has accused Ripple of conducting a $1.3 billion unregistered securities offering through its sale of XRP, a charge Ripple denies, arguing that XRP should not be classified as a security.
Under the leadership of SEC Chairman Gary Gensler, the Commission has maintained a strict regulatory stance, initiating numerous enforcement actions against other crypto businesses, which many in the crypto space view as an overreach. These actions have fostered a sense of urgency within the crypto industry to seek more favorable regulatory conditions through political channels.
The influence of cryptocurrency on US politics has grown significantly, as evidenced by recent legislative efforts and political endorsements. Just last week, bipartisan legislation aimed at creating a friendlier regulatory framework for digital assets gained traction in the House. Additionally, a controversial SEC rule that would have restricted crypto companies’ access to banking services was overturned by a Senate vote, demonstrating a potential shift in Congressional sentiment towards more supportive crypto regulations.
These political developments are occurring alongside endorsements from prominent figures such as GOP presidential front-runner Donald Trump, who recently expressed his support for the use of digital assets and announced his campaign’s acceptance of donations in cryptocurrencies. This political backing could signal a broader acceptance and integration of cryptocurrency technologies in governmental and financial systems.
The role of Fairshake and similar super PACs in influencing election outcomes has been stark. For instance, in a high-profile case earlier this year, Fairshake spent $10 million on a campaign that targeted anti-crypto Congresswoman Katie Porter (D-California) during her Senate campaign. The campaign was seen as a decisive factor in her loss to Adam Schiff (D-California), a candidate more favorable to the crypto industry.
At press time, XRP traded at $0.52951.