Chris Larsen, one of the founders of Ripple, recently made news by donating $1 million in the XRP cryptocurrency, to the Kamala Harris presidential campaign. This is the first time Harris, currently the Vice President and the Democratic candidate for the upcoming election, has received a cryptocurrency-documented donation.
Larsen donated to a political action committee (PAC) named Future Forward USA, which backs Harris’s campaign, contributing about 1.75 million XRP tokens.
The PAC uses Coinbase Commerce to accept cryptocurrency donations, converting them into USDC, a stablecoin pegged to the U.S. dollar. This conversion mitigates the typical volatility of cryptocurrency prices.
Larsen has been a supporter of Harris in the past, publicly endorsing her in September. With this latest donation, his contributions to her campaign have exceeded $1.9 million. This support is significant, especially as Ripple is currently embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC).
The SEC alleges Ripple raised over $1.3 billion through XRP sales without adhering to securities laws, a claim Ripple disputes.
As the 2024 election approaches, cryptocurrency has emerged as a major topic for candidates. Donald Trump has vocally supported the crypto industry, earning the nickname “Crypto Candidate.” Harris, however, has been more cautious. Her campaign, nonetheless, has initiated an effort called Crypto4Harris to engage with the crypto community and rival Trump’s influence.
Larsen is among 88 business leaders who have endorsed Harris. Although many in the crypto industry tend to support former President Donald Trump for his pro-crypto stance, some executives are increasingly interested in Harris.
Trump has expressed mixed views on cryptocurrencies. In 2019, he openly criticized Bitcoin and other digital currencies, labeling them unstable and lacking real value. He also disapproved of Facebook’s attempt to create its own digital currency, insisting that the U.S. dollar should remain the nation’s sole legal currency.
During his presidency, his administration did not focus heavily on cryptocurrencies. However, regulators under his leadership closely monitored the industry.
However, Donald Trump’s recent stance on cryptocurrencies indicates a more supportive position compared to his earlier skepticism. He has expressed that he sees potential in digital currencies and has acknowledged the importance of the crypto market in the broader financial landscape.
Trump has called for regulations that could create a more favorable environment for cryptocurrency innovation, suggesting that he recognizes the need for a balanced approach that protects consumers while allowing the industry to grow.
Additionally, he has been known to advocate for the use of Bitcoin and has mentioned that he believes in the significance of cryptocurrencies in the economy, stating that he wants to make America the global crypto capital.