Crypto Firm Ripple Backs Republican Lawyer in Bid to Unseat Sen. Elizabeth Warren
The battle for Massachusetts’ U.S. Senate seat has taken an unexpected turn as Ripple, a prominent cryptocurrency firm, places a significant bet on Republican lawyer John Deaton to defeat incumbent Sen. Elizabeth Warren. This move, first reported by FOX Business, underscores the growing intersection of politics and digital assets.
According to Federal Election Commission filings, Ripple has donated $1 million to the Commonwealth Unity Fund, a new super PAC spearheaded by lawyer and crypto advocate James Murphy. The goal: replace Warren, a vocal critic of the cryptocurrency industry, with Deaton.
John Deaton, a Marine veteran and political newcomer, has made a name for himself as a staunch defender of the crypto industry. His rise to prominence is largely due to his vigorous social media advocacy for Ripple, which has been embroiled in a legal battle with the Securities and Exchange Commission (SEC) since 2020. The SEC accused Ripple of issuing the digital token XRP without proper registration, a move that allegedly violated securities laws.
The lawsuit, initiated by former President Trump’s SEC chair Jay Clayton and pursued by Gary Gensler, President Biden’s appointee and a close associate of Warren, has been a focal point in the crypto regulatory landscape. Deaton’s intervention in the case played a pivotal role in a New York court’s ruling last year, which declared that XRP does not constitute a security when sold on public exchanges. While this ruling is subject to potential appeal, it marked a significant victory for Ripple and the broader $2 trillion digital asset industry.
Ripple’s leadership has been active in supporting Deaton’s campaign. CEO Brad Garlinghouse and founder Chris Larsen each donated the maximum $6,600 allowed by law to his campaign last quarter. Additionally, Ripple has funneled $50 million to another super PAC, Fairshake, which aims to elect crypto-friendly politicians to Congress.
Super PACs, while unable to donate directly to campaigns, play a crucial role in modern elections by funding extensive media campaigns that either support or attack specific candidates. Despite its $170 million war chest, Fairshake has yet to weigh in on the Deaton-Warren race, although it has achieved notable success in other political battles.
The involvement of Ripple in this high-stakes Senate race highlights the crypto industry’s increasing political engagement. As the sector seeks greater regulatory clarity and favorable policies, supporting candidates sympathetic to their cause has become a strategic priority.
Sen. Elizabeth Warren, known for her rigorous stance on financial regulation, has been a formidable opponent of the cryptocurrency industry. Her position has made her a target for crypto advocates who view her policies as stifling innovation and growth in the sector.
As the Senate race heats up, the influence of cryptocurrency firms like Ripple on American politics becomes ever more apparent. With substantial financial backing and high-profile endorsements, John Deaton’s campaign represents a significant push by the crypto industry to shape its regulatory future. The outcome of this race could have profound implications for the digital asset landscape and its place in the broader financial system.
David Thompson
Finance Desk
