Ripple CEO Brad Garlinghouse has weighed in on recent statements made by Tesla CEO Elon Musk regarding the potential role of XRP in financial institutions.
Garlinghouse’s remarks came on Monday, October 21, in response to a question posed during a Trump campaign rally last week. During the rally, someone in the audience inquired whether Musk sees the XRP Ledger being adopted by financial institutions in the future.
Musk replied, “This is definitely not an endorsement or lack of endorsement for XRP, but I do think crypto by its very nature helps with individual freedom.”
In a response, Garlinghouse highlighted the increasing importance of cryptocurrency in the political arena, stating, “Voters care about crypto—they care about XRP. It’s not a niche issue. They want real policies that drive innovation and create jobs. Candidates that ignore crypto and blockchain risk a serious loss in support from a growing, informed voter base.” His comments underscore the vital role that cryptocurrency is expected to play as the U.S. approaches the 2024 presidential elections.
Musk’s mention of XRP also comes at a time when Ripple has faced significant challenges, notably a prolonged lawsuit from the SEC, initiated in December 2020, alleging that Ripple’s sales of XRP constituted unregistered securities offerings. Although Ripple secured a partial victory in federal court, the SEC has sought an appellate review, prolonging the uncertainty surrounding the company and the cryptocurrency market at large.
Garlinghouse’s comments take on added weight given the scrutiny Ripple has received for its financial contributions to the Biden administration. On Monday, Ripple co-founder Chris Larsen made headlines for donating $10 million worth of XRP to the Future Forward USA PAC, which supports Vice President Kamala Harris. This donation has raised eyebrows within the crypto community, particularly since the Biden administration has been criticized for its tough stance on crypto regulation.
Despite the apparent contradiction, Larsen defended his contributions, emphasizing the need for the Democratic Party to adapt its approach to tech innovation, especially in the crypto sector.
“It’s time for the Democrats to have a new approach to tech innovation, including crypto. I believe Kamala Harris mwill ensure that American technology dominates the world, which is why I’m donating $10M in XRP in support of her.” Tweeted Larsen.
Notably, with XRP priced at approximately $0.52, Larsen’s donation represents a significant investment in Harris’s campaign, prompting discussions about the implications of backing an administration perceived as hostile to crypto.
On Tuesday, legal expert “MetaLawMan” highlighted the complexities of the donations and how it could impact the XRP case.
“Since Chris Larsen has donated $10M in XRP to Kamala Harris, the campaign will have to sell Larsen’s XRP (presumably on an exchange) to convert it to dollars. Will Harris clear that transaction with Gary Gensler? Will this trade impact the SEC’s appeal in the Ripple case?” he asked.
