Crypto community criticises Ripple Co-Founder Chris Larsen after he Donated $10M in XRP to Harris campaign

The cryptocurrency community is enraged after Chris Larsen, co-founder of Ripple, revealed that he had made an additional $10 million donation in XRP to support Vice President Kamala Harris’s campaign.

Larsen's latest move came about a week after the Federal Election Commisssion (FEC) filings showed that the crypto executive donated $1 million in XRP tokens to the Future Forward Super PAC, which backs the Democratic presidential nominee.

The executive chairman of Ripple, which is currently grappling with the U.S. Securities and Exchange Commission in a lawsuit initiated by the financial regulator four years ago, said he believes Harris "will ensure that American technology dominates the world."

"It's time for the Democrats to have a new approach to tech innovation, including crypto", Larsen said, seemingly referring to earlier statements made by pro-crypto candidates from the democratic Party regarding Kamala's supposed desire for a "reset with the industry that's been hounded by the SEC under Chair Gary Gensler.

Ripple CEO coming to Larsen's defence

Ripple CEO, Brad Garlinghouse commented on the issue shortly after Larsen revealed his huge donation to the Harris campaign. In a statement on X, Garlinghouse remarked, “I respect Chris and everyone else's right to support whoever they believe is best to lead the U.S."

He went on to note that there is an urgently need to shift away from this administration’s misguided war on crypto. He promised that Ripple, the largest holder of the XRP token, would engage with both political parties to push for pro-crypto policies.

"It's not about party lines; it's about championing policies that drive blockchain and crypto innovation," he pointed out.

Crypto community criticisms Larsen's 'careless' move

There were several key figures in the crypto community who have raised their eyebrows at Larsen's donation, and many crypto users, especially those who use the XRP token, criticized his presidential choice.

Trader Amonyx accused Larsn of "carelessly spending money without considering XRP investors and supporters." Another user agreed, saying that crypto executives had "complete disregard for $XRP holders."

Venture capitalist and Bitcoiner Nic Carter called the donation "completely baffling", while crypto influencer Amelie said she hopes "there is a hidden twist in that action."

While many crypto and XRP users are fuming over Larsen's announcement, others are theorising about why the crypto magnate had to make the move.

SEC Legal Battle with Ripple

One user suggested that Larsen may have picked the blue side"in lieu of a larger, corporate fine." She was referring to the year-long legal battle between the SEC and Ripple, that finally came to a close with a $125 million fine. Hence, people have speculated that Larsen's donation may be linked to the four-year-long legal scuffle.

Ripple has been embroiled in a legal battle with the SEC since before President Joe Biden’s 2020 inauguration. The SEC charged Ripple, along with Garlinghouse and Larsen, with operating as unregistered brokers of digital tokens, which the SEC classifies as securities. Although the charges against the executives were dropped, Ripple continues to challenge the allegations, and the litigation remains ongoing.

Recently, the SEC filed an appeal, further extending its legal confrontation with Ripple, keeping the company’s regulatory future uncertain.