Why Is Ripple Betting Big on Kamala Harris and Shocking Everyone?

In a surprising twist, Ripple has thrown millions behind Kamala Harris. But is this just politics, or could Ripple be planning something more for XRP? The company’s recent moves reveal a strategic pivot as it eyes an XRP ETF approval and seeks stability in its ongoing battle with the SEC.

Ripple’s Political Pivot

Ripple has historically maintained neutrality in U.S. elections, especially after its $1.3 billion lawsuit from the SEC during the Biden administration. Yet, Ripple’s CEO Brad Garlinghouse and co-founder Chris Larsen have made notable pro-Harris statements, with Larsen donating $10 million in XRP to her campaign, following an earlier $1 million donation. Garlinghouse praised Harris for her pro-technology stance and suggested that a win by either Harris or Trump could benefit the crypto industry compared to the Biden administration’s “failed approach.”

Ripple’s Dual Strategy Amid SEC Battles

Ripple’s donations come amid an ongoing battle with the SEC, which filed a lawsuit in 2020 claiming that XRP was an unregistered security. Although Ripple scored partial victories, including a reduced penalty from $2 billion to $125 million, the SEC’s appeal looms large. Supporting both Harris and Trump might help Ripple influence favorable regulatory outcomes regardless of who wins the 2024 election.

Ripple’s Big Gamble on an XRP ETF

Ripple’s strategic support of political candidates could be a bid to ensure approval of an XRP ETF. An ETF would allow investors to access XRP through stock exchanges, broadening its market reach and providing a regulated investment avenue for institutions. Ripple CEO Garlinghouse has called an XRP ETF “inevitable,” comparing the potential success to the $50 billion managed by spot Bitcoin ETFs.

A Strategic Hedge for Ripple’s Future

Ripple’s split support of Harris and Trump reflects the stakes of the 2024 election for the crypto industry. While the majority of crypto-backed donations support Republicans, Ripple’s dual approach could ensure that it benefits regardless of the election’s outcome. Ripple’s focus on XRP ETF approval and an easing of SEC pressures demonstrates the company’s efforts to secure its place in mainstream finance and resolve the regulatory uncertainties plaguing XRP.