Ripple Donates $1 Million to Political Action Committee Amid Legal Battle Over XRP with SEC
- Ripple donates $1 million to a new super political action committee (PAC) called Commonwealth Unity Fund, founded by attorney James Murphy.
- The donation aligns with similar political contributions made by the Winklevoss Twins ahead of the 2024 elections.
- “We believe in supporting initiatives that drive financial innovation and regulatory clarity,” stated Ripple’s spokesperson.
Ripple donates $1 million to Commonwealth Unity Fund, further strengthening its political influence ahead of the 2024 elections.
Ripple’s Strategic Political Contribution
In a significant step towards influencing the political landscape, Ripple recently donated $1 million to the newly established Commonwealth Unity Fund, a super PAC founded by attorney James Murphy. The donation was reported in a quarterly filing with the Federal Election Commission (FEC). Additionally, Murphy contributed $50,000 to the PAC on April 15th. This move marks a strategic effort by Ripple to support candidates and policies that favor the cryptocurrency industry.
Ripple’s Ongoing Legal Battle with the SEC
Ripple is concurrently engaged in a high-stakes legal battle with the United States Securities and Exchange Commission (SEC) over the sale of XRP tokens, which the SEC claims to be unregistered securities. In a notable development in July 2023, Judge Analisa Torres of New York ruled that some secondary sales of XRP did not violate securities laws due to the blind bid process utilized. However, she also determined that direct sales of XRP to institutional investors constituted investment contracts and thus fell under securities regulations.
The Winklevoss Twins’ Political Endeavors
The cryptocurrency sector’s political engagement is further exemplified by the Winklevoss Twins, Cameron and Tyler, who also made notable contributions. On June 21st, the founders of Gemini and Bitcoin billionaires donated $500,000 to the Trump-supporting super PAC, America PAC, with each twin contributing $250,000. These contributions were documented in separate filings with the FEC earlier this week.
The Impact of Crypto Donations on the 2024 Elections
The influx of donations from major crypto players coincides with an increase in Donald Trump’s odds of winning the 2024 Presidential election, according to decentralized prediction market platform Polymarket. Trump’s probability of victory surged to 72%, following an attempted assassination on a pro-crypto candidate over the weekend. Meanwhile, President Joe Biden’s odds stand at 17%. These political contributions are likely to shape the legislative and regulatory environment for the cryptocurrency industry significantly, with Trump naming Ohio Senator J.D. Vance, a known crypto advocate, as his running mate. Vance, who has a venture capitalist background, disclosed Bitcoin holdings between $100,000 and $250,000 as of 2022, according to his October 2023 financial report.
Conclusion
The recent political donations by Ripple and the Winklevoss Twins underline the increasing involvement of the cryptocurrency industry in shaping political outcomes. These contributions are aimed at supporting pro-crypto candidates and influencing regulatory frameworks. As the 2024 elections approach, the political stakes are higher than ever, with the potential for significant ramifications on the future of cryptocurrency legislation and regulation in the United States.
