- Chris Larsen’s XRP donation to VP Kamala Harris sparks debate amid Ripple SEC lawsuit.
- Legal experts question if the donation will impact SEC’s stance on Ripple’s case.
- The XRP community criticizes Larsen’s donation, seeing it as a potential complication.
Ripple co-founder Chris Larsen’s donation of XRP to U.S. Vice President Kamala Harris has raised concerns within the crypto community. This comes alongside Ripple facing a lawsuit from the U.S. Securities and Exchange Commission (SEC). Many are now wondering whether this donation could have any impact on the ongoing legal case.
The SEC has previously indicated that it does not consider XRP to be a security, but questions are being raised about whether Larsen’s donation could still influence the case. Some legal experts suggest that the process of converting XRP into fiat currency might require SEC oversight.
Pro-XRP lawyer Bill Morgan commented that the SEC has not made judgments on XRP donations, arguing that these transactions do not represent investment contracts. Some experts believe that Larsen’s contribution is separate from the Ripple case.
The SEC ultimately did not seek summary judgment against Ripple for gifts, giveaways and donations. Those XRP no doubt were eventually on-sold.
Why would the SEC care about Larsen’s donation for Harris. A donation is obviously not an investment contract and the SEC has accepted… https://t.co/2nt3BqlmQ5 pic.twitter.com/bVdq4U8zWq
— bill morgan (@Belisarius2020)
October 22, 2024
Community Criticism and Legal Concerns
Criticism has surfaced, particularly within the XRP community. Some feel that Larsen’s support of Harris was poorly timed, as they believe that Ripple’s leadership should focus on the lawsuit instead of political donations. Legal expert MetaLawMan even speculated that the transaction might require SEC clearance due to the involvement of XRP.
The debate has led to further discussion around Ripple’s actions. Ripple CEO Brad Garlinghouse has defended Larsen’s right to support any political candidate but emphasized the need for clear crypto regulations. Garlinghouse warned that the current lack of regulatory clarity is holding back the development of the crypto industry.
Other prominent figures have voiced their opinions. Former Messari CEO Ryan Selkis criticized the donation, accusing Ripple of exploiting retail investors. Selkis also argued that XRP has lost value compared to stablecoins, questioning Ripple’s influence on financial innovation.
The timing of the donation has sparked speculation about whether it will increase scrutiny from the SEC. Gary Gensler, the current SEC chair, has remained committed to strict cryptocurrency regulations, with critics arguing that his approach is stifling innovation in the U.S. crypto market.
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https://coinniu.com/crypto-politics-ripple-co-founders-10m-xrp-gift-to-kamala-harris-campaign-stirs-controversy/
