Ripple, the blockchain powerhouse behind XRP, has made headlines recently with its political contributions, particularly its significant donations to Kamala Harris’s presidential campaign. This has left many wondering: What is Ripple’s true agenda? Could this be a move toward securing favorable regulations for XRP or something even bigger?

Ripple’s Political Pivot:

Historically, Ripple has remained neutral in U.S. elections, especially given its rocky relationship with regulators, including the Securities and Exchange Commission (SEC). Yet, Ripple CEO Brad Garlinghouse recently praised Harris’s approach to digital assets, calling it “constructive” during the D.C. Fintech Week event. This has raised eyebrows, especially since Ripple faced a $1.3 billion lawsuit from the SEC under a Democratic administration.

Ripple’s political donations have further fueled the intrigue. Chris Larsen, co-founder of Ripple, has donated $10 million in XRP to Harris’s campaign, following an earlier $1 million donation. This comes at a time when many in the crypto industry have been more inclined to support Donald Trump, making Ripple’s support for Harris particularly surprising.

The Ripple-SEC Saga:

Ripple’s relationship with the SEC has been anything but smooth. The SEC’s lawsuit in 2020 accused Ripple of selling unregistered securities in the form of XRP. Although Ripple scored a partial legal victory in July 2023 when a judge ruled that XRP sales to retail investors didn’t qualify as securities, the SEC’s pursuit didn’t stop. In August 2024, the SEC sought a $2 billion fine but was awarded a much smaller $125 million penalty. Ripple celebrated the ruling, but the SEC’s ongoing appeal still looms large.

Garlinghouse has been vocal about the “failed approach” of the Biden administration towards crypto, and his praise for Harris signals a shift in Ripple’s strategy. He even suggested that a win for either Harris or Trump would benefit the crypto industry, marking a notable pivot from Ripple’s previous stance.

What’s Ripple’s Endgame?

Ripple’s recent donations could be part of a broader strategy to ensure XRP’s future success. Amid speculation about Ripple’s XRP ETF ambitions, the company’s political contributions appear more strategic than random. An XRP ETF would be a game-changer, allowing investors to gain exposure to XRP through a regulated stock exchange, without the complexities of direct ownership.

Garlinghouse recently expressed optimism, calling an XRP ETF “inevitable,” citing increasing demand from institutional and retail investors. The success of Bitcoin ETFs, which have amassed over $50 billion in assets under management, demonstrates that the market is ready for more crypto-based ETFs. Ripple is positioning itself to capitalize on this trend.

The Trump Factor:

Ripple’s political strategy isn’t just limited to Harris. In June 2024, Ripple’s Chief Legal Officer, Stuart Alderoty, made a notable $300,000 donation to Trump’s campaign. Trump’s shift toward a pro-crypto stance has resonated with many in the industry, leading some to speculate that a Trump victory could lead to more favorable SEC leadership for Ripple and XRP.

This dual approach—donations to both Harris and Trump—could be Ripple’s way of hedging its bets. Regardless of who wins the 2024 election, Ripple aims to secure a favorable position, both politically and in the crypto market.

Ripple Eyes an XRP ETF:

A central part of Ripple’s long-term strategy revolves around launching an XRP ETF. Such a product would legitimize XRP as a mainstream financial asset, allowing it to overcome the lingering uncertainties from its legal battles with the SEC. Approval of an ETF could not only boost investor confidence but also drive up XRP’s price and liquidity.

With major players like Bitwise and Canary Capital already filing for XRP ETFs, Ripple is strategically positioning itself to benefit from this potential approval. However, the SEC’s resistance remains a hurdle, and Ripple’s donations to both Harris and Trump could be a way to ensure favorable outcomes no matter the political landscape.

Conclusion:

Ripple’s recent political moves are far from ordinary. By betting on Kamala Harris and making significant contributions to both her and Trump’s campaigns, Ripple is playing a calculated game to secure XRP’s future. Whether it’s about winning an XRP ETF or gaining favor with future U.S. leadership, Ripple is ensuring that it has a seat at the table, no matter who takes the White House in 2024.