Why is Ripple betting big on Kamala Harris and shocking everyone?

Ripple has thrown thousands and thousands behind Kamala Harris. What’s the actual agenda right here? Is that this about politics, or is Ripple gearing up for one thing greater with XRP?

Ripple’s cut up persona hits

Ripple, the blockchain large behind XRP, has all the time been within the highlight for one factor or the opposite. Currently, nonetheless, it looks like Ripple is upping its political recreation, particularly with some notable statements from its CEO, Brad Garlinghouse.

On the DC Fintech Week occasion, Garlinghouse gave a uncommon nod to Democratic presidential candidate Kamala Harris, praising her method to digital belongings. He even went as far as to name her stance on crypto “most constructive.”

This raises some eyebrows, given Ripple’s historic neutrality in US elections and rocky relationship with US regulators.

However Garlinghouse’s feedback come at an fascinating time: one when Ripple is eyeing the opportunity of an XRP ETF and coping with the aftershocks of its lengthy authorized battle with the US SEC below a Democratic administration.

So why the shift to Harris, and what may this imply for Ripple’s future? Let’s check out Ripple’s political donations, the corporate’s hopes for an XRP ETF, and the drama surrounding it.

Ripple’s political heart

Historically, Ripple hasn’t precisely been greatest pals with the Democratic Occasion, particularly contemplating the $1.3 billion lawsuit the SEC confronted below President Biden’s administration in 2020.

But right here we’re in 2024, watching Ripple CEO and co-founder Chris Larsen make daring statements and donations in help of Democratic presidential candidate Harris.

Garlinghouse nonetheless maintained Ripple’s impartial stance on the election, describing Harris as “pro-tech” and touting her connections to Silicon Valley.

He even recommended {that a} Harris or Trump victory would profit the crypto business, a notable distinction to his harsh criticism of the present Biden-led administration’s method.

However the actual drama unfolded when Chris Larsen donated a whopping $10 million in XRP to Harris’ marketing campaign, following an earlier $1 million donation. This got here after Trump closely courted crypto supporters, making Larsen’s transfer much more stunning.

Nic Carter, a well known cryptocurrency enterprise capitalist, expressed his confusion on Twitter, calling the donation “utterly baffling.” In any case, many within the business see Trump extra as a crypto champion, given his vocal help for digital belongings.

However Garlinghouse defended his co-founder’s resolution, stating that Ripple encourages its staff to help whoever they suppose is greatest for the nation, and reiterated that that is extra about pro-crypto insurance policies than political social gathering loyalty.

He mentioned the upcoming 2024 elections are essential for the way forward for the crypto business. Whether or not Harris or Trump wins, Garlinghouse believes both candidate would ship an enchancment on what he known as the Biden administration’s “failed method” to digital belongings.

This has solely elevated hypothesis about Ripple’s motives as the corporate’s relationship with the SEC stays controversial.

Ripple’s relationship with Democrats, particularly the SEC, has been removed from easy. In 2020, the SEC hit Ripple with a hefty lawsuit, accusing the corporate of promoting unregistered securities within the type of XRP.

This lawsuit, filed throughout Biden’s presidency, has been hanging like a darkish cloud over Ripple for years. Though Ripple received a partial victory in July 2023 when a decide dominated that XRP gross sales to retail buyers didn’t qualify as securities, the SEC didn’t again down.

Within the final judgment in August 2024, the regulator demanded an enormous superb of $2 billion, however was subsequently imposed a a lot smaller superb of $125 million. Ripple known as this a win, however the SEC’s continued name continues to create uncertainty.

A survival technique?

Ripple’s latest political strikes have been something however strange. Only a few months in the past, in June 2024, Ripple’s Chief Authorized Officer, Stuart Alderoty, made headlines with a hefty donation of $300,000 XRP to Trump’s presidential marketing campaign.

Alderoty’s donation got here at a time when Trump had shifted to a pro-crypto stance, a change that seemingly influenced the Ripple CLO’s resolution. In any case, many believed that if Trump returned to the White Home, he would substitute Gensler with a extra crypto-friendly SEC chairman, probably benefiting the crypto business.

In truth, between April and June 2024, Trump’s fundraising efforts raised greater than $118 million, together with $4 million in cryptocurrencies corresponding to Bitcoin (BTC), Ethereum (ETH), and XRP.

Excessive-profile donors corresponding to Tyler and Cameron Winklevoss and BitGo CEO Mike Belshe have additionally endorsed Trump, additional strengthening the crypto business’s alignment with the previous president.

Regardless of Ripple’s obvious division, the broader crypto business has closely supported Trump. Current information from AdImpact reveals that crypto firms spent 62% extra on adverts for Republicans than Democrats this 12 months.

Fairshake, a top-spending PAC, has poured $54.6 million into election adverts supporting GOP candidates, in comparison with $33.7 million for Democrats.

A lot of this spending is focused on key Home races in states like New York, Nevada and California. For instance, Southern California Republicans David Valadao and Michael Garcia, each in tight races, have obtained $1.3 million and $1 million, respectively, from crypto-backed PACs.

Ripple’s twin technique displays the uncertainty surrounding the 2024 US presidential election and its influence on the crypto business.

With political donations from crypto teams reaching $190 million for this election cycle, the stakes have by no means been greater. Whether or not it is Trump or Harris within the Oval Workplace in 2025, Ripple appears decided to make sure it will get a seat on the desk. However why?

You may also like: Because the US election race heats up, will Harris’ crypto pledges outweigh Trump’s guarantees?

Ripple Eyes XRP ETF

On the one hand, Larsen has supported Harris vocally. Then again, Alderoty donated to Trump’s marketing campaign in June 2024. Nevertheless, Ripple’s latest donations – each to Harris and Trump – may very well be a strategic maneuver.

Bitwise and Canary Capital have already filed for XRP ETFs, which, if greenlit, would permit buyers to achieve publicity to XRP via an trade with out proudly owning the precise cryptocurrency.

In truth, Garlinghouse just lately known as an XRP ETF “inevitable” in a dialog with Bloomberg, noting that there’s rising demand from each retail and institutional buyers for entry to this asset class. If the XRP ETF is accepted, it may change the world for Ripple and its stakeholders.

Spot Bitcoin ETFs, for instance, have grown to carry greater than $50 billion in belongings below administration, proving that institutional buyers are keen to achieve publicity to cryptocurrency with out the complexities of direct possession.

Then again, regardless of launching with nice anticipation in July 2024, Ethereum ETFs have solely amassed round $7 billion in belongings below administration – ​​a a lot smaller quantity in comparison with Bitcoin.

From Ripple’s perspective, approving an XRP ETF can be an enormous win. Not solely wouldn’t it validate XRP as a respectable monetary asset, however it might additionally assist resolve the lingering considerations the SEC lawsuit has raised.

Due to this fact, an ETF would permit Ripple to satisfy investor demand in a regulated, mainstream method, rising confidence in XRP and probably driving up its value and liquidity.

With the present resistance from the SEC, Ripple’s donations to each Harris and Trump may very well be a strategic hedge, permitting the corporate to capitalize on each candidates’ favor and at last acquire approval for his or her long-awaited XRP ETFs – no matter who wins the election 2024 wins.