Ripple, a prominent cryptocurrency company, has made a significant contribution of $1 million to support XRP advocate John Deaton in his campaign against Senator Elizabeth Warren in the Massachusetts Senate race. The funds have been directed to the Commonwealth Unity Fund, a super PAC created by attorney James Murphy, who himself donated $50,000 to the cause.
John Deaton officially entered the race for the GOP nomination for the U.S. Senate in Massachusetts in February, aiming to challenge Democrat Senator Elizabeth Warren in the upcoming election. He is one of several candidates competing in the Republican primary scheduled for September 3.
In addition to Ripple’s donation, executives Brad Garlinghouse and Chris Larsen each contributed $6,600 to Deaton’s campaign in April. The donations were split into two parts, with half allocated for the primary and the other half for the general election. Support for Deaton extends beyond Ripple, with figures like Cardano founder Charles Hoskinson also endorsing his candidacy. As of April, Deaton had raised $1.26 million, largely from crypto enthusiasts.
The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission regarding the sale of XRP adds a layer of complexity to the situation. While a previous ruling determined that Ripple’s secondary sales of XRP did not violate securities laws, direct sales to institutional investors were classified as securities investment contracts.
The Massachusetts senatorial race has become a focal point for both anti- and pro-crypto factions. Deaton, known for his involvement in the Ripple vs. SEC case, champions the pro-crypto perspective. His efforts have been instrumental in establishing that Ripple’s XRP sales are not investment contracts. In contrast, Senator Elizabeth Warren, a seasoned politician, has been a vocal critic of cryptocurrencies, advocating for their regulation and restriction.
Crypto firms have been actively supporting pro-crypto candidates through super PACs, with approximately $150 million invested in the cause. Ripple’s recent $25 million donation to the super PAC Fairshake underscores the industry’s commitment to shaping the political landscape. Other key players like Coinbase and a16z crypto are also contributing to Fairshake in support of pro-crypto candidates in the 2024 U.S. elections.
In conclusion, Ripple’s substantial donation to John Deaton’s campaign reflects the company’s alignment with the pro-crypto movement in the face of ongoing regulatory challenges. The Massachusetts Senate race serves as a battleground between opposing views on cryptocurrency, highlighting the significance of industry support for candidates who advocate for its growth and development.