1
Ripple has filed a notice of cross-appeal after the SEC filed to appeal a 2023 ruling on $XRP's status as a non-security. Cryptocurrency.com/flickr

KEY POINTS

  • FEC filings showed that Larsen donated $1M in $XRP to the Future Forward PAC
  • Notably, the donation was made even before Harris said she will support digital assets growth
  • Crypto users are disappointed with the news, given the ongoing legal fight between the SEC and Ripple

Despite a seeming disconnect with the cryptocurrency industry, it turns out Vice President Kamala Harris did receive some crypto token support for her campaign, and it came from a prominent figure in the sector.

Journalist Eleanor Terrett first reported Saturday about new Federal Election Commission (FEC) filings that showed Chris Larsen, the co-founder of digital asset custody and payments firm Ripple, donated $1 million worth of XRP tokens to the Future Forward PAC, which supports the Harris campaign.

The amount was notably designated as an "in-kind" donation, and is the first known documented crypto donation to the Democratic presidential nominee.

Harris and Crypto

The donation was made in mid-August – before Harris spoke about digital assets and before the Harris-Tim Walz mentioned digital assets once in their official economic plan published last month.

While the Democratic presidential nominee has only spoken once about digital assets throughout her campaign, a small group of crypto advocates and pro-crypto Democrats came together to represent her as a presidential aspirant who wants a "reset" with the crypto community.

Why Larsen's Contribution is a Big Deal

Larsen's donation to a PAC that supports the Harris campaign is significant due to the ongoing battle between the U.S. Securities and Exchange Commission (SEC) and Ripple.

One X user noted that the SEC under the Donald Trump administration in 2020 was the one that filed a lawsuit against Ripple over its alleged sales of XRP, which the regulator deemed an unregistered security.

Some crypto users immediately came to Trump's defense, saying it was the Biden administration that pursued the case even if the Trump SEC filed the lawsuit. The latter is technically true since it was the Gary Gensler SEC that picked up from where his predecessor started and pursued a crackdown of the crypto industry.

Crypto Users React to Revelation

Aside from the ongoing legal scuffle between the SEC and Ripple over XRP's status as a security, there is also a general sense of displeasure in the broader crypto community over Kamala's lack of vocal support for crypto.

One user said Larsen should have donated to charity such an animal shelter that will "make good use of the money," instead of donating to a pro-Harris campaign, further calling out the vice president for allegedly allowing "Gary to appeal your case."

The SEC recently filed a notice to appeal a 2023 ruling that established the XRP token's status as a non-security. Ripple has since filed a notice of cross-appeal.

Many other crypto users expressed disappointment over Larsen's alleged "negligence" and move of "feeding the mouth that bites you."

An increasing number of people from the XRP army, the community of XRP holders, have also called out Larsen for a move they still find hard to comprehend given the plight of XRP users as a result of the SEC's crusade on Ripple.

Ripple did not immediately respond to International Business Times' request for comments.

Larsen has yet to respond to the outrage as Ripple CEO Brad Garlinghouse pledged that the company will fight back against the Gensler SEC's continuing attempts to implement an enforcement-first approach toward Ripple and other crypto firms.

Read more