Chris Larsen’s Significant Contribution
Chris Larsen, co-founder of Ripple, has made headlines with a substantial contribution to Vice President Kamala Harris’s presidential campaign, donating $1 million in XRP, the cryptocurrency associated with Ripple. This generous support was disclosed in Federal Election Commission (FEC) filings, which show that the donation was made on August 14 to the Future Forward PAC, a political action committee that advocates for Harris. The donation was classified as a non-contribution account, consisting of 1,754,815.29 XRP, without being liquidated into cash.
XRP Donation: A Novel Approach to Campaign Finance
The Future Forward PAC employs Coinbase Commerce, a digital platform that allows for the conversion of cryptocurrency contributions into USDC, a stablecoin pegged to the U.S. dollar. This is noteworthy, as it marks the first recorded cryptocurrency contribution to Harris’s campaign, highlighting a new trend in campaign financing through digital assets. Fox Business reporter Eleanor Terrett was among the first to break this story, emphasizing the significance of Larsen’s donation as a pioneering move in the realm of political donations.
Growing Trends in Cryptocurrency Contributions
As of August 31, data from Open Secrets revealed that Future Forward PAC had raised over $200 million through various contributions. This financial backing has been bolstered by notable donors, including former New York City Mayor Michael Bloomberg, venture capitalist Reid Hoffman, and the cryptocurrency exchange Coinbase. Initially, Future Forward PAC had aligned itself with President Joe Biden’s reelection efforts but later shifted its focus towards lending support to Harris’s campaign.
In addition to Larsen’s significant donation, Phil Potter, co-founder of Tether, contributed nearly half a million dollars to the Commonwealth Unity Fund, a super PAC backing Jonathan Deaton’s challenge against Senator Elizabeth Warren. This reflects a broader trend among influential figures in the cryptocurrency sector, as members of the Ripple community and Gemini co-founders Cameron and Tyler Winklevoss have also played roles in supporting the CUF, which has raised over $2.5 million in total to date.
Impact of Cryptocurrency in the Upcoming Election
The upcoming election on November 5 has brought cryptocurrency to the forefront of political discourse, with its role being both dynamic and contentious. Vice President Harris recently unveiled an 80-page economic plan that outlines her administration’s strategy towards digital assets and emerging technologies such as artificial intelligence. Her plan stresses the importance of consumer and investor protection while fostering innovation in the digital finance space.
In contrast, Republican candidate Donald Trump has vowed to end what he describes as an “unlawful and un-American crackdown” on the U.S. cryptocurrency industry, signaling a potentially more favorable perspective toward cryptocurrencies under his leadership. This divide illustrates the growing intersection between politics and digital assets as the election approaches, raising questions about the future of cryptocurrency regulations in the United States.