Monica Long, the President of Ripple, has expressed confidence that the substantial lobbying efforts of the crypto industry will have an impact on the upcoming U.S. elections. Ripple is actively participating in fundraising campaigns to support positive politicians towards crypto. The awareness campaign intends to resolve the regulatory problems that the industry faces in the United States.
Ripple has raised $92.9 million to influence the November congressional elections. This data, compiled by OpenSecrets, shows the increasing financial role of the crypto industry in American politics. Fairshake, a super PAC, can collect funds from a range of sources, such as corporations and individuals, and have the freedom to use the money to promote or oppose political candidates without any constraints.
According to a report from Public Citizen, the collective fundraising for the 2024 elections tops an impressive $102 million. At the Money20/20 fintech conference in Amsterdam, Long emphasized the super PAC’s bipartisan nature and its focus on supporting candidates who support crypto-friendly regulations. She expressed frustration with the U.S.’s slow progress in establishing clear regulatory guidelines for the crypto industry.
She criticized the current practice of regulating through enforcement, calling it “unproductive and not getting us anywhere.” Despite these challenges, Long remains hopeful about the industry’s prospects, stating, “I’m optimistic, yes. I’m hopeful.”
Ripple’s Legal Battles Fuel Crypto Lobbying
The crypto industry has intensified its lobbying as it faces increasing scrutiny from U.S. regulators and lawmakers. The collapse of major firms in 2022 exposed significant fraud and misconduct, leading to increased regulatory pressure.
The SEC has sued several leading crypto companies, including Ripple, for alleged securities law violations. In a notable case, a federal judge ruled in July that Ripple’s sale of its token, XRP, to sophisticated buyers was an unlawful sale of unregistered securities. Sales on public exchanges, however, did not meet this definition.
The SEC is seeking $2 billion in fines and penalties from Ripple, highlighting the contentious relationship between the regulator and the crypto industry. Crypto advocacy groups are pushing for legislation to limit the SEC’s regulatory authority over the industry. According to Public Citizen, half of the industry’s political funds come from corporate contributions, notably Coinbase and Ripple.
The rest comes from billionaire executives and venture capitalists, including $11 million from the founders of Andreessen Horowitz, $5 million from the Winklevoss twins, and $1 million from Coinbase CEO Brian Armstrong. These substantial contributions reflect the industry’s determination to influence regulatory policies. Despite the industry’s financial power, gaining the voters’ support remains a challenge.
Crypto Lobbying Seeks Regulatory Shift
A May survey by Digital Currency Group found that only 14% of swing state voters own cryptocurrency, 69% view it negatively, and 31% see it positively. Although voters are dissatisfied with the current financial system, they do not necessarily view the industry as a viable alternative. Recently, President Biden vetoed the resolution that would have placed restrictions on the SEC’s ability to regulate digital assets.
SEC Chair Gary Gensler described the crypto sector as a “Wild West,” plagued by fraud and investor risk. Claypool, an analyst, noted similarities between the crypto industry’s lobbying and those of other powerful sectors like Big Oil and insurance companies, seeking to ease regulatory rules. According to Claypool, the industry’s main objectives are to evade more stringent enforcement actions, halt anti-fraud regulations, and elect politicians unwilling to impose regulatory restrictions.
Long observed that the SEC has aggressively targeted the crypto industry recently, and many hope for a shift in approach. The upcoming elections will reveal if the industry’s lobbying efforts will achieve the regulatory changes they seek.
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