The cryptocurrency industry is no stranger to political lobbying, but Ripple’s recent move takes things a step further.
The company, known for its XRP token and cross-border payment solutions, has announced a $25 million investment in a campaign to promote crypto-friendly political leaders across the United States.
According to Ripple CEO Brad Garlinghouse, who spoke to Bloomberg Crypto, the campaign is a response to the need for more education and advocacy for the crypto sector.
He said that many politicians use crypto as a sound bite, without backing up their statements with facts. He also said that the campaign will support candidates who are willing to learn and engage with the crypto community
The campaign comes at a critical time for Ripple, as it is facing a lawsuit from the US Securities and Exchange Commission (SEC), which accuses the company of selling XRP as an unregistered security.
The lawsuit, which was filed in December 2020, has caused significant damage to Ripple’s reputation and market value, as well as affecting the liquidity and availability of XRP on various platforms.
Ripple has denied the SEC’s allegations, arguing that XRP is not a security, but a digital asset that is used for cross-border payments and remittances.
Ripple has also claimed that the SEC’s actions are harming the innovation and competitiveness of the US crypto sector and that the agency is applying an outdated and inconsistent framework to crypto assets.
Ripple is not the only crypto company that is facing regulatory hurdles and challenges in the US market.
Other crypto platforms, such as Coinbase, Kraken, and Binance.US, are also dealing with various issues, such as compliance, licensing, and customer service.
These platforms are competing for the growing number of US crypto users, who are looking for more options and features to trade and invest in web3 assets.
Critics argue that Ripple’s investment could be seen as an attempt to buy influence, potentially leading to a pay-to-play system where special interests dictate policy.
Additionally, there are concerns that focusing solely on crypto-friendly candidates could create an echo chamber, neglecting the need for balanced and nuanced discussions about the technology’s potential drawbacks and regulatory needs.
It remains to be seen whether Ripple’s gamble will pay off. But one thing is certain: this multi-million dollar investment has ignited a crucial conversation about the intersection of politics, finance, and the future of cryptocurrency.
