Ripple President Optimistic About Crypto Industry's Political Influence
Overview of Lobbying Efforts
Monica Long, President of U.S. crypto firm Ripple, expressed optimism regarding the crypto industry's lobbying efforts to influence the 2024 U.S. elections. Ripple has significantly contributed to a record fundraising haul aimed at supporting crypto-friendly political candidates.
Ripple's Political Contributions
San Francisco-based Ripple is the second-largest donor to Fairshake, a super PAC that has raised $92.9 million to influence the congressional elections in favor of the crypto industry, according to OpenSecrets. Overall, super PACs backed by the cryptocurrency sector have raised more than $102 million this election cycle, making it the third-largest fundraising group among all super PACs engaged in the 2024 elections, based on data from Public Citizen.
The Role of Super PACs
Super PACs, or independent political action committees, can raise and spend unlimited amounts of money from corporations, unions, associations, and individuals to support or oppose political candidates. Ripple’s contributions to these PACs aim to garner support for regulatory frameworks that favor the crypto industry.
Advocacy at Money20/20 Conference
Speaking at the Money20/20 fintech conference in Amsterdam, Long emphasized the bipartisan nature of the PAC's efforts, focusing solely on supporting candidates who favor the regulatory environment desired by the crypto industry. She criticized the current U.S. approach to crypto regulation, which she described as "setting rules through enforcement," calling it unproductive.
Challenges and Regulatory Scrutiny
The crypto industry faces increased scrutiny from U.S. regulators and politicians, especially following major bankruptcies in 2022 that exposed fraud and left millions of investors at a loss. Several leading crypto firms, including Ripple, have been sued by the U.S. Securities and Exchange Commission (SEC) for alleged securities law violations. In July, a federal judge ruled that Ripple's sale of its token, XRP, to sophisticated buyers constituted unlawful sales of unregistered securities, although XRP sold on public exchanges did not meet the legal definition of a security. The SEC seeks fines and penalties totaling $2 billion in its case against Ripple.
Legislative Push and Industry Sentiment
Crypto groups are advocating for legislation to reduce the SEC's oversight of the industry. According to Public Citizen, approximately half of the crypto industry's political funding comes from direct corporate expenditures, mainly from Coinbase and Ripple, with the rest from venture capitalists. However, the industry's lobbying efforts face challenges. A survey by Digital Currency Group indicated that only 14% of voters in swing states own cryptocurrency, and 69% of them have a negative perception of crypto, compared to 31% who view it positively.
Presidential and SEC Stance
U.S. President Joe Biden recently vetoed a resolution that would limit the SEC's regulatory power over crypto assets, supporting SEC Chair Gary Gensler's description of the crypto industry as a "Wild West" full of fraud and investor risk. Ripple's Long noted the SEC's aggressive stance towards the crypto industry and expressed hope for a more favorable regulatory approach in the future.
