Authors: Elizabeth Howcroft and Hannah Lang
AMSTERDAM/NEW YORK (Reuters) – The CEO of a U.S. crypto company is “optimistic” that the crypto industry’s lobbying push will bear fruit in this year’s U.S. elections, after her company helped the industry mount a record fundraising effort to support political candidates who they are cryptocurrency amiable. According to research group OpenSecrets, San Francisco-based Ripple is the second-largest donor to Fairshake, a so-called super PAC that has raised $92.9 million in an attempt to influence November’s congressional elections in favor of the crypto industry. who tracks influence in politics. Super PACs backed by the cryptocurrency industry have raised more than $102 million so far this cycle, third among all super PACs involved in the 2024 elections, according to Public Citizen data.
Independent political action committees, known as super PACs, can raise unlimited amounts of money from corporations, unions, associations and individuals and then spend unlimited sums to openly advocate for or against political candidates.
Speaking at the Money20/20 fintech conference in Amsterdam on Tuesday, Ripple CEO Monica Long told Reuters the PAC is bipartisan and has one goal: supporting candidates who support regulation desired by the crypto industry.
“I think as an industry, especially we as U.S.-based companies, we are frustrated by how far the U.S. has fallen behind in setting the rules,” she said. “This whole dynamic of setting rules through enforcement… is really unproductive and doesn’t get us anywhere.”
When asked if she was positive that the U.S. crypto industry’s voice would be heard, Long replied: “I’m positive, yes. I hope”.
The cryptocurrency industry is increasingly seeking to influence U.S. lawmakers as it faces increased scrutiny from regulators and politicians, especially as bankruptcies of major cryptocurrency companies in 2022 spooked investors, exposed fraud and misconduct, and left millions of crypto investors without pocket.
Several leading cryptocurrency companies have been sued by the US securities regulator for alleged violations of securities laws, including Ripple. In July, a federal judge ruled that Ripple’s sale of its XRP token to sophisticated buyers amounted to the unlawful sale of unregistered securities, but also ruled that XRP sold on public exchanges did not meet the legal definition of a security.
The Securities and Exchange Commission is seeking a total of $2 billion in fines and penalties in its case against the company, Ripple said.
Crypto groups are pushing for lawmakers to pass a bill that would limit SEC oversight of the industry. A report by Public Citizen shows that roughly half of the crypto industry’s war money comes from direct corporate spending, mainly from cryptocurrency exchanges Coinbase (NASDAQ:) and Ripple, with the remainder coming from venture capital funds. However, the industry’s own data suggests that lobbyists may face difficulties in gaining support. A survey by US crypto firm Digital Currency Group published in May found that only 14% of voters in US states whose results could influence Democratic or Republican cryptocurrency, and 69% of them have a negative attitude towards cryptocurrencies compared to 31% , who has a positive attitude. “While most voters are dissatisfied with the current financial system, only a minority believe that cryptocurrencies are the future of transactions or a new way to prosperity,” the report said. U.S. President Joe Biden, a Democrat, last week vetoed a resolution he described as Republican-led that would “inappropriately limit the SEC’s ability to establish appropriate guardrails and address future issues” related to crypto assets. SEC Chairman Gary Gensler previously called the cryptocurrency industry the “Wild West,” rife with fraud and investor risk.
Ripple’s Long said the SEC seemed to be on a “warpath” with the cryptocurrency industry in recent years and that everyone was hoping for a “change in tone.”
