Ripple, the influential blockchain company behind XRP, has recently made notable political moves that have raised questions about its true intentions. Specifically, Ripple CEO Brad Garlinghouse’s praise for Democratic presidential candidate Kamala Harris has sparked speculation about Ripple’s motives and its plans for XRP.
Historically, Ripple has remained neutral in U.S. elections and has had a rocky relationship with U.S. regulators, particularly the Securities and Exchange Commission (SEC). However, Garlinghouse’s positive remarks about Harris come at a time when Ripple is considering the possibility of launching an XRP exchange-traded fund (ETF) and dealing with the aftermath of its legal battle with the SEC under the Biden administration.
This shift towards Harris and the significant donations made by Ripple co-founder Chris Larsen to her campaign have surprised many in the industry, especially considering former President Trump’s efforts to court crypto supporters. Some have found Larsen’s donation completely baffling, as they view Trump as more supportive of cryptocurrencies.
Garlinghouse, however, defends Larsen’s decision and emphasizes that Ripple encourages its employees to support candidates they believe are best for the country, regardless of political party. He believes that the 2024 election is crucial for the future of the crypto industry and that both Harris and Trump would improve upon the Biden administration’s approach to digital assets.
These political moves by Ripple have added to the speculation about the company’s motives, particularly in light of its contentious relationship with the SEC. The SEC filed a lawsuit against Ripple in 2020, accusing the company of selling unregistered securities in the form of XRP. Despite a partial victory for Ripple in July 2023, the SEC continues to appeal the case, creating uncertainty for the company.
Ripple’s recent political actions, including Stuart Alderoty’s donation to Trump’s campaign and the broader crypto industry’s support for Trump, highlight the uncertainty surrounding the 2024 U.S. presidential election and its potential impact on the crypto industry. With political donations from crypto groups reaching $190 million for this election cycle, Ripple is determined to ensure its voice is heard and its interests are protected, regardless of the election outcome.
In terms of Ripple’s plans for an XRP ETF, the company recognizes the growing demand from both retail and institutional investors to access this asset class. Garlinghouse believes that an XRP ETF is inevitable and sees it as a significant opportunity for Ripple. The approval of an XRP ETF would not only validate XRP as a legitimate financial asset but also address the concerns raised by the SEC lawsuit. It would allow Ripple to meet investor demand in a regulated and mainstream way, boosting confidence in XRP and potentially increasing its price and liquidity.
Given the SEC’s resistance to the idea of an XRP ETF, Ripple’s donations to both Harris and Trump could be seen as a strategic move to hedge their bets and position the company to benefit from the favor of either candidate. Ultimately, Ripple’s goal is to secure approval for their long-awaited XRP ETF, regardless of who wins the 2024 election.