Will Political Donations Save XRP from SEC’s Wrath? Read CoinChapter.com on Google News
NAIROBI (CoinChapter.com)— Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC) has spotlighted the company’s extensive political contributions. As Ripple defends itself in a high-stakes case, the role of political donations has become a key issue.
Can these contributions shield Ripple and XRP from the SEC’s aggressive stance?
Can Political Donations Tip the Scales in Ripple’s Favor?
Ripple and Coinbase, two major crypto players, have poured over $100 million into political action committees (PACs) supporting pro-crypto regulations. Ripple’s substantial contributions, particularly to the Fairshake PAC, highlight its strategy to secure a regulatory environment favorable to XRP.
Crypto sector contributions to influence the 2024 elections. Source: Rick Claypool
Public Citizen, a nonprofit consumer advocacy organization, warns that these donations could influence lawmakers, potentially weakening regulations that favor “Big Crypto” at the expense of consumer protection.
Rick Claypool, a research director at Public Citizen, suggests that Ripple’s contributions aim to buy influence, potentially compromising the integrity of the regulatory process.
Corporate contributions to federal elections with the crypto sector highlighted. Source: OpenSecrets
Ripple’s approach combines a legal defense with heavy investment in political influence. Despite the SEC imposing a $125 million fine with a 60-day appeal period in the Ripple vs. SEC case, Ripple is banking on a more favorable regulatory climate that might affect the case’s outcome.
Political Pressure Mounts on the SEC
The SEC is facing legal challenges and political pressure from various quarters. At the recent Bitcoin 2024 conference, former President Donald Trump made headlines by promising to “make Bitcoin great again” if re-elected.
He also pledged to ensure the federal government HODLs Bitcoin and to fire SEC Chair Gary Gensler on his first day in office.
Donald Trump speaking at the Bitcoin 2024 conference about firing Gary Gensler. Source: X
In addition, Democratic presidential candidate Kamala Harris has signaled support for cryptocurrency growth. During a Bloomberg roundtable at the Democratic National Convention in Chicago, her senior policy advisor, Brian Nelson, announced that Harris would back policies to promote the crypto sector.
The bipartisan pressure adds to the SEC’s challenges in the Ripple vs. SEC case and other crypto enforcement actions.
Can Donations and Political Pressure Influence the Appeal Process?
While political donations and increasing political pressure may bolster Ripple’s influence in Washington, it remains unclear whether they can sway the SEC’s decision to appeal. The SEC operates independently of Congress and bases its actions on legal interpretations and enforcement priorities rather than political considerations.
Anders predicts the SEC’s appeal timing in the Ripple case before the U.S. election. Source: X
Anders, a digital asset researcher, noted that if the SEC decides to appeal the Ripple case, it would coincide with the U.S. presidential election, creating a challenging scenario for the SEC and Gary Gensler.
However, the combined effect of political pressure from pro-crypto lawmakers and Ripple’s strategic donations could lead to legislative changes that might benefit the broader crypto regulatory environment.
In the end, while political donations may give Ripple some leverage, they are unlikely to determine the outcome of its legal battle with the SEC. The courts will ultimately decide Ripple’s fate.
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