Kamala Harris and XRP: A Possible Strategy to Alleviate Campaign Debt
President-elect Donald Trump recently made a light-hearted comment offering Vice President Kamala Harris help with the $20 million debt attributed to her campaign. This playful interaction led to an interesting proposal involving Ripple’s cryptocurrency, XRP.
One social media user suggested that Harris might consider selling any donated XRP holdings to help address her campaign’s financial challenges, particularly if the SEC were to settle its legal battle with Ripple. The end of the SEC case could potentially boost the value of XRP, which could help Harris cover a substantial portion of her debt.
Marc Fagel, a former SEC attorney, clarified that Harris would not face regulatory complications if she decided to sell her XRP, as she is a retail holder and not an issuer. The SEC’s primary focus is on Ripple, the issuer of XRP, rather than individual investors. Therefore, Harris would be able to sell her XRP without being subject to the strict securities regulations that apply to Ripple.
Fagel explained that the ongoing legal debate concerns whether sales of XRP qualify as investment contracts under the Howey test. Since Harris has no direct affiliation with Ripple as an issuer, his sales would not require SEC registration.
For reference, Ripple co-founder Chris Larsen previously donated over $10 million worth of XRP to a fund supporting Harris' campaign $XRP