Ripple has thrown millions behind Kamala Harris. What’s the real agenda here? Is this about politics, or is Ripple gearing up for something bigger with XRP?
Ripple’s split personality hits
Ripple, the blockchain giant behind XRP, has always been in the spotlight for something or the other. Lately, though, it seems Ripple is stepping up its political game, especially with some eye-catching statements from its CEO, Brad Garlinghouse.
During the D.C. Fintech Week event, Garlinghouse gave a rare nod to Democratic presidential candidate Kamala Harris, praising her approach to digital assets. He even went as far as calling her stance on crypto “most constructive.”
Now, this raises some eyebrows, considering Ripple’s historical neutrality in U.S. elections and its rocky relationship with the U.S. regulators.
But Garlinghouse’s comments come at an interesting time—one where Ripple is eyeing the possibility of an XRP ETF and dealing with the aftershocks of its longstanding legal battle with the U.S. SEC under a Democratic administration.
So, why the shift towards Harris, and what could it mean for Ripple’s future? Let’s take a look at Ripple’s political donations, the company’s hopes for an XRP ETF, and the drama surrounding it all.
Ripple’s political pivot
Traditionally, Ripple hasn’t exactly been best friends with the Democratic Party, especially considering the $1.3 billion lawsuit it faced from the SEC under President Biden’s administration in 2020.
Yet, here we are in 2024, watching Ripple CEO and co-founder Chris Larsen make bold statements and donations supporting Democratic presidential candidate Harris.
Garlinghouse, while still maintaining Ripple’s neutral stance on the election, described Harris as “pro-technology” and praised her connections to Silicon Valley.
He even suggested that either a Harris or Trump win would benefit the crypto industry, a notable contrast to his harsh criticism of the current Biden-led administration’s approach.
But the real drama unfolded when Chris Larsen donated a whopping $10 million in XRP to Harris’ campaign, following an earlier donation of $1 million. This came after Trump had been heavily courting crypto supporters, making Larsen’s move even more surprising.
Nic Carter, a well-known crypto venture capitalist, expressed his confusion on Twitter, calling the donation “completely baffling.” After all, many in the industry see Trump as more of a crypto champion, given his vocal support for digital assets.
But Garlinghouse defended his co-founder’s decision, stating that Ripple encourages its employees to support whoever they believe is best for the country, reiterating that this is more about pro-crypto policies than political party loyalty.
A strategy of survival?
Ripple’s recent political moves have been anything but ordinary. Just months ago, in June 2024, Ripple’s Chief Legal Officer, Stuart Alderoty, made headlines with a hefty $300,000 XRP donation to Trump’s presidential campaign.
Alderoty’s donation came at a time when Trump had shifted towards a pro-crypto stance, a change that likely influenced the Ripple CLO’s decision. After all, many believed that if Trump returned to the White House, he would replace Gensler with a more crypto-friendly SEC chair, potentially benefiting the crypto industry.
Ripple eyes XRP ETF
On one hand, Larsen has been vocally supporting Harris. On the other hand, Alderoty donated to Trump’s campaign in June 2024. However, Ripple’s recent donations—both to Harris and Trump—could be a strategic maneuver at play.
Bitwise and Canary Capital have already filed for XRP ETFs, which, if greenlit, would allow investors to gain exposure to XRP through a stock exchange without holding the actual cryptocurrency.