Regulation
Ripple Crypto Super PAC Donation Overshadows Proposed $10 Million Fine According to SEC
In a bold move, Ripple Labs made a massive donation to reaffirm its position. determination to reshape the regulatory landscape for cryptocurrencies in the US The blockchain payments company has announced a substantial donation of $25 million to Fairshake, a political action super committee for cryptocurrencies. Furthermore, this contribution exceeds the $10 million penalty proposed by Ripple to be paid to the Securities and Exchange Commission (SEC) in the ongoing legal battle.
Ripple makes a major donation to Fairshake
Ripple’s decision to invest significant funds in political advocacy is part of a broader industry-led effort to amplify cryptocurrency voices ahead of the November elections. With the cryptocurrency industry at a crucial moment in its maturation, stakeholders are intensifying their efforts to influence policymakers and secure favorable regulatory frameworks.
Brad Garlinghouse, the CEO of Ripple, underlined the industry’s determination not to remain silent in the face of regulatory obstacles. “Ripple will not – and the cryptocurrency industry should not – remain silent while unelected regulators actively seek to impede innovation and economic growth,” the Ripple CEO said, according to Fox Business.
Growing tension between the SEC and the cryptocurrency industry has put a strain on relations. It all started with Gary Gensler, the chairman of the SEC, spearheading a series of lawsuits against major players. The industry claims the overly ambitious regulator has unfairly targeted them. However, the SEC maintains its position in enforcing securities laws.
Recent developments suggest a changing landscape in Washington’s perception of the cryptocurrency industry. These include bipartisan support for favorable legislation and the Financial Innovation and Technology for the 21st Century Act (FIT21). Additionally, the repeal of a controversial SEC rule, SAB 121, has attracted considerable attention.
Republican presidential candidate Donald Trump has also signaled his willingness to embrace digital assets, offering hope to cryptocurrency enthusiasts. Additionally, the SEC has approved eight Ethereum Spot ETFs, potentially impacted by the Biden administration’s changing stance on cryptocurrencies.
Therefore, the role of super PACs, such as Fairshake, in determining election outcomes cannot be understated. Fairshake’s substantial financial support influenced key elections, tipping the scales in favor of crypto-friendly candidates. Furthermore, the defeat of anti-crypto Congresswoman Katie Porter in California is a testament to the effectiveness of such political maneuvers.
Read also: Ripple CTO defends Joe Biden’s gag order request in Trump trial
About the XRP vs. SEC lawsuit
The battle between Ripple and the SEC has been long and contentious, lasting over three years. At the heart of the dispute is the SEC’s accusation that Ripple knowingly violated US securities laws by selling its cryptocurrency XRP without proper registration.
Meanwhile, Ripple’s opposition to the SEC’s motion for remedies and filing of the final ruling highlights the company’s firm stance against what it perceives as overregulation. Earlier this month, Ripple Labs denied paying the $2 billion fine imposed by the SEC. The company said it will not pay more than $10 million in penalties, opposing the exorbitant fine proposed by the SEC.
Stuart Alderoty, Ripple’s Chief Legal Officer, expressed confidence in the judicial process. Additionally, he pointed to the absence of allegations of recklessness or fraud in the SEC case. “Our opposition to the SEC’s request for $2 billion in fines for legacy institutional sales is now public… the SEC’s request is just further evidence of its ongoing intimidation against all cryptocurrencies in the United States”
Read also: XRP Lawyer Hints at SEC Corruption in Hinman Ethereum Case