Ripple co-founder Chris Larsen joined 87 other corporate leaders in endorsing Vice President Kamala Harris for the White House, as reported by CNBC on Sept. 6.

The letter included several other high-profile signatories, including Aaron Levie (Box CEO), Jeremy Stoppelman (Yelp CEO), philanthropist Lynn Forester de Rothschild, private equity billionaire José Feliciano, Twilio co-founder Jeff Lawson, DC sports magnate Ted Leonsis, Snap chairman Michael Lynton, and former 21st Century Fox CEO James Murdoch.

Letter Overview

According to CNBC, the letter emphasized that electing Harris as president is the best way to support democracy and the economy’s strength, security, and stability.

The signatories believe Harris would implement fair policies that uphold the rule of law and foster a stable business environment.

The letter was not aimed at swaying the public but rather positioned as a political statement to boost Harris’s profile, especially with the first presidential debate just days away.

Harris and crypto

Larsen’s backing for Harris is notable due to Ripple’s consistent advocacy for blockchain innovation and drive to ensure that pro-crypto candidates are elected. Due to this, the firm has contributed millions to Fairshake, a federal super PAC supporting pro-crypto and pro-innovation candidates.

However, Larsen’s endorsement of Harris may seem unexpected since she has not publicly shared her position on the crypto sector.

Nevertheless, Larsen’s endorsement also signals Harris’s growing support within the crypto industry.

Although much of the sector favors former President Donald Trump for his pro-crypto policies, there is increasing interest in Harris. Recently, crypto executives and advocates reportedly discussed raising $100,000 for Harris’s campaign, hoping to influence her stance on crypto regulation if she wins.

J.P. Theriot, co-founder of Uphold, also voiced his support for Harris on X (formerly Twitter). Additionally, Harris’s campaign has begun accepting crypto donations via Coinbase.

Despite this support, Harris currently trails Trump in the decentralized prediction market Polymarket.

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Ripple has requested a stay on the monetary portion of a recent judgment requiring the company to pay $125 million to the US Securities and Exchange Commission (SEC).

This request was made in a Sept. 4 filing in the US District Court for the Southern District of New York.

According to the filing, Ripple’s legal team stated that the SEC agreed to delay the payment beyond Sept. 6. Under the agreement, Ripple proposed depositing 111% of the judgment amount—about $139 million—into a bank account. This sum will remain there until 30 days after the appeal period expires or until the resolution of any appeal.

The filing also noted that post-judgment interest would accrue in favor of the SEC during this time. Ripple will maintain beneficial ownership of the funds without control, including any interest accumulating from the deposit.

The legal teams emphasized that this agreement protects both parties’ interests. It ensures the SEC will have access to the funds if necessary while allowing Ripple to avoid the costs and inconvenience of posting a bond for the full judgment amount.

Appeal speculation

Some experts believe this filing signals a potential appeal from the SEC. Pro-XRP lawyer Fred Rispoli commented that the odds of an appeal have increased given the case’s complexity.

He stated:

“This is not a guarantee that there will be an appeal, but putting that kind of money in a trust is not something that is done unless SEC is being evasive to Ripple lawyers as to whether it intends on appealing. Again, still possible that no appeal happens but odds have increased.”

Rispoli reassured the XRP community that a potential SEC appeal wouldn’t significantly affect the token, adding that a ruling wouldn’t occur until 2026. He further noted that the SEC’s recent lawsuits against exchanges and its classification of multiple tokens as securities have lessened the potential impact on XRP.

He stated:

“If Ripple and/or XRP don’t make it now, it’s not because of the SEC’s case.”

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The court has levied a $125 million fine on Ripple in the lawsuit filed by the US Securities and Exchange Commission (SEC), ending the four-year-long dispute.

XRP’s price leaped 18% in minutes after the news broke and was trading at $0.61 as of press time, based on CryptoSlate data.

District Judge Analisa Torres from the District Court of the Southern District of New York partially rejected the SEC’s motion for remedies, which demanded over $2 billion from Ripple as compensation for allegedly selling XRP as an unregistered security.

According to the filing:

“The Court shall enter a final judgment enjoining Ripple from further violations of the securities laws and imposing a civil penalty of $125,035,150.”

The ruling comes after the court granted a partial summary judgment to both parties in July 2023. According to the filings, the court found that Ripple’s institutional sales of XRP constituted investment contracts and, therefore, violated securities laws.

However, the court also ruled that Ripple’s programmatic sales and other distributions of XRP did not meet the criteria for investment contracts under the Supreme Court’s Howey test and, therefore, did not constitute securities sales.

Notably, the court analyzed the XRP offerings conducted by Ripple and found out that only 1,278 transactions violated Section 5 of the Securities Act of 1933 (the “Securities Act”), 15 U.S.C. §77e(a),(c). The SEC suggested in its filing that each of Ripple’s “1,700 relevant contracts” constitutes a separate violation, reads the document.

This is a developing story and will be updated as new information is gathered.

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Ripple (XRP) is looking to boost blockchain technology adoption in the Middle East through a partnership with the Dubai International Financial Centre (DIFC) Innovation Hub, according to an Aug. 7 statement.

The collaboration aims to promote blockchain and crypto adoption by linking developers, early-stage companies, and traditional large institutions with the DIFC Innovation Hub. This hub is the largest innovation community in the region, hosting over 1,000 growth-stage tech companies, innovation firms, digital labs, venture capitalists, regulators, and educational institutions.

Brad Garlinghouse, CEO of Ripple, highlighted the UAE’s role in providing regulatory clarity and fostering financial innovation. He added:

“Our partnership with the DIFC Innovation Hub promises to drive the adoption of blockchain technology in the region.”

The DIFC is a prominent economic zone with over 5,000 residents, known for its crypto-friendly regulations. In March, the region enacted a Digital Assets Law and Security Law. It also updated existing legislation to eliminate uncertainties for investors and users adopting digital assets technology.

XRPL Foundation

Meanwhile, Ripple President Monica Long also revealed that the firm is considering establishing an independent XRP Ledger (XRPL) Foundation. She said:

“For now, discussions [are ongoing] with XRPLF, XRPL Labs, XRPL Commons, Ripple and others are about a new (independent) XRPL foundation.”

David Schwartz, Ripple’s Chief Technology Officer, explained that the Foundation would serve the interests of XRPL and the community, including developers, builders, users, projects, exchanges, universities, validators, and infrastructure providers.

The Ripple executives’ disclosure comes as XRPL’s previous Foundation transitioned into the Inclusive Financial Technology Foundation (INFTF) to support broader technologies beyond the Ripple-backed blockchain network.

INFTF stated that it wants to advance digital initiatives and acknowledged that its previous connection to Ripple could limit its ability to achieve these goals.

So, the INFTF has asked Ripple stakeholders to create a new entity to oversee functions previously managed by the XRPL Foundation, such as maintaining the XRP Trademark, Code Repository, and XRPL.org domain.

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Ripple’s XRP token has surged to a four-month high of $0.65 and is on pace for its best monthly performance this year.

According to CryptoSlate’s data, XRP’s value has jumped about 33% over the past month, making it the top-performing large-cap crypto for July, surpassing Solana and other high-flying digital assets.

Retail and whale interest

Market analysts attribute this rise to the growing retail and whale investors’ interest in the digital asset.

According to CoinMarketCap, XRP’s trading volume spiked by 165% to $2.5 billion in the last 24 hours. Notably, South Korean exchanges Upbit and Bithumb contributed around 15% of this volume.

Additionally, blockchain intelligence firm Santiment reports a significant increase in wallets holding at least 10,000 XRP over the past five weeks, reaching a six-month high of 279,400 addresses. The firm noted that the correlation between these large wallets and XRP’s market value has been evident throughout 2024.

Potential SEC settlement?

Moreover, there are also speculations about a potential settlement between Ripple and the US Securities and Exchange Commission (SEC).

The SEC is set to hold a closed-door meeting on Aug. 1, sparking speculations that it might discuss a settlement with Ripple. However, the regulator’s website did not indicate that the meeting would involve the crypto company or its XRP token.

Still, many in the XRP community believe it indicates an impending agreement between both entities, as the meeting agenda included topics such as the institution and settlement of injunctive actions and administrative proceedings.

Furthermore, some analysts have pointed out that the SEC’s reluctance to reach a court decision on the security status of third-party tokens like Solana in its case against Binance may strengthen Ripple’s defense against the SEC’s securities claim on XRP.

Last year, Judge Analisa Torres ruled that XRP’s programmatic sales to the public do not constitute an offer or sale of an investment contract. However, she also ruled that the institutional sales of the token violated federal securities law.

Since then, the financial regulator has sought to penalize the crypto firm heavily for these violations.

Ripple CEO Brad Garlinghouse criticized the SEC for its inconsistent regulatory practices and ambiguous rules. He remarked:

“Chair Gensler testifies the rules are clear, yet his SEC can’t figure them out and applies them haphazardly, festering more industry confusion.”

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Tyler and Cameron Winklevoss, founders of the Gemini exchange, each donated $500,000 worth of Bitcoin to support pro-crypto lawyer John Deaton’s effort to unseat Senator Elizabeth Warren. 

On July 18, the Winklevoss brothers explained their donations to the XRP advocate, calling him an “American hero” and the “only candidate who can defeat Elizabeth Warren in the race for US Senate in Massachusetts.”

Tyler wrote:

“John Deaton is an American hero; Elizabeth Warren is not. John Deaton is a pro-Bitcoin, pro-crypto, and pro-business candidate; Elizabeth Warren is not. She is a lawmaker who can’t pass a law. She is celebrity over results. Politician over leader. Form over substance.”

Deaton is a prominent pro-XRP lawyer who has consistently criticized Warren and US financial regulators’ approach to the emerging industry. He has played vital roles in the SEC’s cases against several crypto firms, including Ripple.

Notably, Deaton enjoys strong crypto community backing. His super political action committee (PAC), the Commonwealth Unity Fund, recently received a $1 million donation from Ripple, and he has raised about $1.7 million, according to Federal Election Data.

Meanwhile, the Winklevoss twins have also supported other pro-crypto candidates. Last month, they donated $2 million in Bitcoin to Donald Trump’s presidential campaign, endorsing his efforts to counter the Biden administration’s anti-crypto policies.

Lampoons Warren

The Winklevoss twins sharply criticized Warren’s anti-crypto stance, calling her “one of the single greatest threats to American prosperity.”

According to Tyler:

“[Warren] is the chief architect and driver of the Biden Administration’s war on crypto. She wages this unlawful war by weaponizing government agencies to attack our industry through a combination of debanking, bad faith enforcement actions, and other abuses of power.”

He added that Warren’s stringent policies extend beyond the crypto industry. According to him, the Senator believes that free markets are bad and should be regulated extensively, that businesses are harmful, and that those who start and lead them are villains.

Tyler concluded:

“Crypto has the capacity to level the financial playing field and promote financial inclusion, fairness, and freedom for all. Elizabeth Warren should be embracing it. Instead, she has tried to kill it. Why? Because she can’t control it. Her lust for power and control is so great that she puts it ahead of the individual consumer that she pretends to care about and protect.”

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