TLDR
- Ripple Labs donated $1 million to a super PAC aiming to unseat Senator Elizabeth Warren
- The super PAC, Commonwealth Unity Fund, supports Republican candidate John Deaton
- Elizabeth Warren is known as a prominent crypto critic
- Ripple is involved in an ongoing legal battle with the SEC
- The crypto industry is increasingly involved in political funding
Ripple Labs, a major player in the cryptocurrency industry, has donated $1 million to a super PAC aimed at unseating Senator Elizabeth Warren in the upcoming November elections.
The donation was made to the Commonwealth Unity Fund, which supports Republican candidate John Deaton in his bid for the Massachusetts Senate seat.
Elizabeth Warren, a Democrat, has long been a vocal critic of the cryptocurrency industry. She’s often seen as one of the key figures behind President Joe Biden’s cautious stance on digital currencies.
This has made her a target for crypto companies looking to shape a more favorable regulatory environment.
The donation from Ripple Labs accounts for over 95% of the Commonwealth Unity Fund’s funding last quarter. James Murphy, a pro-crypto attorney known as MetaLawMan on social media, founded the super PAC and personally contributed $50,000.
I am extremely grateful to @Ripple for its generous support of the Commonwealth Unity Fund Super PAC supporting @DeatonforSenate.
Management of @Ripple is proving once again that they will stand and fight against even the most powerful political forces.
Thank you.🙏 https://t.co/dt8BwOmbqR
— MetaLawMan (@MetaLawMan) July 16, 2024
This move comes as Ripple faces its own challenges with regulators. The company is currently engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC) over the classification of XRP, the cryptocurrency associated with Ripple. In May, SEC lawyers suggested they were seeking a fine of at least $2 billion from Ripple.
The cryptocurrency industry’s involvement in politics isn’t limited to Ripple. Another super PAC called Fairshake, funded by Ripple, Coinbase, and Andreessen Horowitz, has raised $178 million this election cycle.
In March, Fairshake spent $3 million to defeat a California Senate candidate seen as an ally of Warren.
Despite these efforts, unseating Warren may prove challenging. Massachusetts typically leans Democratic, and recent polls showed Warren leading potential Republican challengers by over 20 points.
The Republican primary, where Deaton will need to secure his candidacy, is scheduled for September 3.
Schools are already struggling to pay their teachers. @senwarren’s failure to address the crisis at the border places the burden on towns and communities. She puts her own interests above her constituents. Parents have every right to be concerned. This is not an issue you can…
— John Deaton (@DeatonforSenate) July 12, 2024
This political involvement comes at a time of change for the cryptocurrency industry in the U.S. After years of resistance, the SEC approved spot Bitcoin ETFs in January 2024, followed by spot Ethereum ETFs in May.
These approvals came after court decisions that went against the SEC’s previous rejections.
The news of Ripple’s support for Deaton had a positive impact on XRP’s price, with the cryptocurrency seeing a 13% increase in 24 hours and a 39% gain over a week. However, the current price of $0.6 is still in line with its value at the start of the year.
As the 2024 elections approach, the cryptocurrency industry’s role in political funding is becoming increasingly visible. Companies like Ripple are using their financial resources to support candidates they believe will create a more favorable environment for digital currencies.
