Why is Ripple Betting Big on Harris and Shocking Everyone?

Ripple threw millions behind Kamala Harris. What’s the real agenda here? Is this about politics or is Ripple preparing for something bigger with XRP?

Ripple’s split personality is spot on

Ripple, the blockchain giant behind XRP, has always been in the spotlight for one thing or another. But lately, Ripple seems to be stepping up its political game, especially with some eye-catching statements from its CEO, Brad Garlinghouse.

During the DC Fintech Week event, Garlinghouse made a rare nod to Democratic presidential candidate Kamala Harris, praising her approach to digital assets. He even went so far as to call his stance on crypto “the most constructive.”

Now, this raises some doubts, given Ripple’s historical neutrality in US elections and its rocky relationship with US regulators.

But Garlinghouse’s comments come at an interesting time; At a time when Ripple is considering the possibility of an XRP ETF and dealing with the aftershocks of a long-running legal battle with the US SEC under a Democratic administration.

So why is there a shift towards Harris and what might this mean for Ripple’s future? Let’s take a look at Ripple’s political donations, the company’s hopes for the XRP ETF, and the drama surrounding them.

Ripple’s political axis

Traditionally, Ripple hasn’t exactly been good friends with the Democratic Party, especially considering the $1.3 billion lawsuit it faced from the SEC in 2020 under President Biden’s administration.

Yet here we are in 2024, and we’re watching Ripple CEO and co-founder Chris Larsen make bold statements and donations supporting Democratic presidential candidate Harris.

While Garlinghouse maintained Ripple’s neutral stance on the election, he described Harris as “pro-tech” and praised her connections to Silicon Valley.

He even suggested that a Harris or Trump win would benefit the crypto industry; This is a notable contrast to his harsh criticism of the current Biden-led administration’s approach.

But the real drama came when Chris Larsen donated $10 million of XRP to Harris’ campaign, following a previous donation of $1 million. This comes after Trump flirted heavily with crypto supporters, making Larsen’s move even more surprising.

Nic Carter, a well-known crypto venture capitalist, expressed confusion on Twitter, calling the donation “completely surprising.” After all, many in the industry see Trump as more of a crypto champion, given his support for digital assets.

However, Garlinghouse defended his co-founder’s decision, stating that Ripple encourages its employees to support whoever they believe is best for the country, and reiterated that this was more about pro-crypto policies than political party loyalty.

I respect Chris’s (and everyone else’s!) right to support whoever he thinks is best to lead the United States

We need to immediately change course from this administration’s misguided war on crypto.

Ripple will continue to engage with both Democrats and Republicans in the final days of the year…

— Brad Garlinghouse (@bgarlinghouse) 21 October 2024

He expressed that the upcoming 2024 elections are very important for the future of the crypto industry. Whether Harris or Trump wins, Garlinghouse believes both candidates will build on what he calls the Biden administration’s “failed approach” to digital assets.

This has only increased speculation about Ripple’s motives, as the company’s relationship with the SEC remains controversial.

Ripple’s relationship with the Democrats, especially the SEC, has been far from smooth. In 2020, the SEC filed a heavy-handed lawsuit against Ripple, accusing the company of selling unregistered securities in the form of XRP.

This lawsuit, filed during Biden’s presidency, has been hanging over Ripple like a dark cloud for years. Although Ripple scored a partial victory in July 2023 when a judge ruled that XRP sales to retail investors did not qualify as securities, the SEC did not back down.

In the final ruling in August 2024, the regulator sought a massive $2 billion fine, but was awarded a much smaller penalty of $125 million. Ripple hailed this as a victory, but the SEC’s ongoing call continues to create uncertainty.

Survival strategy?

Ripple’s recent political moves were far from ordinary. Just months ago, in June 2024, Ripple’s Chief Legal Officer Stuart Alderoty made headlines with his $300,000 XRP donation to Trump’s presidential campaign.

Alderoty’s donation comes at a time when Trump is shifting towards a pro-crypto stance, and this change likely influenced the Ripple CLO’s decision. Ultimately, many believed that if Trump returned to the White House, he would replace Gensler with a more crypto-friendly SEC chairman, which would benefit the crypto industry.

In fact, between April and June 2024, Trump’s fundraising efforts generated over $118 million; $4 million of this was in cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and XRP.

High-profile donors like Tyler and Cameron Winklevoss and BitGo CEO Mike Belshe have also backed Trump, further strengthening the crypto industry’s alignment with the former president.

I just donated $1 million in bitcoin (15.47 BTC) @realdonaldtrump He will vote for him in November. Here’s why:

Over the last few years, the Biden Administration has openly declared war on crypto. Bullying, harassing and… pic.twitter.com/qOQSpmanBR

— Tyler Winklevoss (@tyler) June 20, 2024

Despite Ripple’s apparent divided loyalties, the broader crypto industry remains largely supportive of Trump. Latest data from AdImpact reveals that crypto companies spent 62% more on ads for Republicans than Democrats this year.

Fairshake, the top-spending PAC, devoted $54.6 million to election ads supporting GOP candidates, compared to $33.7 million for Democrats.

Much of this spending is concentrated on key House races in states like New York, Nevada and California. Southern California Republicans David Valadao and Michael Garcia, for example, received $1.3 million and $1 million, respectively, from crypto-backed PACs in tight races.

Ripple’s dual strategy reflects the uncertainty surrounding the 2024 US presidential election and its impact on the crypto industry.

With political donations from crypto groups reaching $190 million this election cycle, the stakes have never been higher. Whether it’s Trump or Harris in the Oval Office in 2025, Ripple seems determined to ensure it has a seat at the table. But why?

Ripple eyes XRP ETF

Larsen, on the other hand, vocally supports Harris. On the other hand, Alderoty donated to Trump’s campaign in June 2024. However, Ripple’s recent donations to both Harris and Trump may be a strategic maneuver.

Bitwise and Canary Capital have already filed for XRP ETFs; This, if given the green light, will allow investors to gain exposure to XRP through an exchange without holding the actual cryptocurrency.

Speaking to Bloomberg recently, Garlinghouse called the XRP ETF “inevitable” and noted that demand from both retail and institutional investors for access to this asset class is increasing. If the XRP ETF is approved, it could change the arena for Ripple and its stakeholders.

For example, spot Bitcoin ETFs have reached over $50 billion in assets under management, proving that institutional investors are eager to gain exposure to the cryptocurrency without the complexity of direct ownership.

Ethereum ETFs, on the other hand, have only accumulated around $7 billion in AUM despite launching with much anticipation in July 2024; This is a much smaller figure compared to Bitcoin.

From Ripple’s perspective, approval of an XRP ETF would be a big win. This will not only validate XRP as a legitimate financial asset, but will also help resolve lingering concerns raised by the SEC case.

An ETF would therefore allow Ripple to meet investor demand in a regulated, mainstream way, increasing confidence in XRP and potentially increasing its price and liquidity.

Given the SEC’s current resistance, Ripple’s donations to both Harris and Trump will leverage the company in favor of both candidates, eventually securing approval for its long-awaited XRP ETFs from whoever wins the 2024 election It can be a strategic hedging tool that positions