Chris Larsen, one of the founders of Ripple, recently made headlines for donating $1 million in the cryptocurrency XRP to Kamala Harris’ presidential campaign. This is the first time Harris, who is currently vice president and a Democratic candidate for the next election, has received a donation documented in virtual currency.
Mr. Larsen donated approximately 1.75 million XRP tokens to a political action committee (PAC) called Future Forward USA supporting Ms. Harris’ campaign.
PAC uses Coinbase Commerce to accept cryptocurrency donations and convert them into USDC, a stablecoin pegged to the US dollar. This conversion reduces the typical volatility of cryptocurrency prices.
Mr. Larsen has supported Ms. Harris in the past, publicly announcing his support for her in September. This donation brings her campaign contributions to over $1.9 million. This support is especially important as Ripple is currently embroiled in a legal battle with the US Securities and Exchange Commission (SEC).
The SEC alleges that Ripple raised more than $1.3 billion through XRP sales without complying with securities laws, a claim Ripple disputes.
As the 2024 elections approach, cryptocurrencies have emerged as a key theme for candidates. Donald Trump has been a vocal supporter of the cryptocurrency industry, earning him the nickname “Crypto Candidate.” But Harris is more cautious. Nevertheless, her campaign has engaged with the cryptocurrency community and launched an initiative called Crypto4Harris to counter Trump’s influence.
Mr. Larsen was one of 88 business leaders who supported Ms. Harris. While many in the crypto industry tend to support former President Donald Trump for his pro-crypto stance, some executives are increasingly interested in Harris.
President Trump has expressed various views regarding virtual currencies. In 2019, he publicly criticized Bitcoin and other digital currencies, labeling them unstable and lacking real value. He also opposed Facebook’s attempts to create its own digital currency, arguing that the US dollar should remain the country’s only legal tender.
During his presidential term, his administration did not focus on cryptocurrencies. But under his leadership, regulators kept a close eye on the industry.
However, Donald Trump’s recent stance on cryptocurrencies indicates a more supportive position compared to his earlier skepticism. He expressed that he sees potential in digital currencies and acknowledges the importance of crypto markets in the broader financial environment.
President Trump has called for regulations that could create a more favorable environment for crypto innovation, recognizing the need for a balanced approach that allows the industry to grow while protecting consumers. It suggests that.
Additionally, he is known to support the use of Bitcoin, stating that he believes in the importance of cryptocurrencies in the economy and that he wants to make America the global crypto capital.
