Amsterdam: Monica Long, president of the US crypto firm Ripple, has expressed optimism that the cryptocurrency industry’s lobbying efforts will yield significant results in the upcoming US elections. Speaking at the Money20/20 financial technology conference in Amsterdam, Long highlighted the industry’s substantial fundraising achievements and its strategic push to support crypto-friendly political candidates.
San Francisco-based Ripple has emerged as the second-largest donor to Fairshake, a super PAC that has raised an impressive $92.9 million. The PAC aims to influence the November congressional elections in favor of the crypto industry, according to Opensecrets, a research group that monitors political influence.
Super PACs associated with the cryptocurrency sector have collectively raised over $102 million this election cycle, making them the third most-funded super PACs engaged in the 2024 elections, based on data from Public Citizen. These independent political action committees can raise and spend unlimited sums of money from corporations, unions, associations, and individuals to advocate for or against political candidates.
Monica Long underscored that Fairshake is a bipartisan entity with a singular focus: supporting candidates who endorse regulatory frameworks favorable to the crypto industry. “I think as an industry, especially for us companies based in the United States, we’re frustrated with how far the US is lagging on setting rules,” Long remarked. “This whole dynamic of setting rules through enforcement is really unproductive and not getting us anywhere.”
When asked about her optimism regarding the crypto industry’s influence in Washington, Long responded, “I’m optimistic, yes. I’m hopeful.”
The crypto sector has been ramping up its efforts to sway US lawmakers amidst increasing scrutiny from regulators and politicians. The aftermath of major crypto firm bankruptcies in 2022, which rattled investors and exposed widespread fraud and misconduct, has intensified regulatory focus. Consequently, several leading crypto firms, including Ripple, have faced legal challenges from the US Securities and Exchange Commission (SEC) for alleged securities law violations.
In a notable ruling in July, a federal judge determined that Ripple’s sale of its token, XRP, to sophisticated buyers constituted unlawful sales of unregistered securities. However, the judge also ruled that XRP sold on public exchanges did not meet the legal definition of a security. The SEC is seeking fines and penalties totaling $2 billion in its case against Ripple.
The crypto industry is actively lobbying for legislation that would limit the SEC’s regulatory authority over the sector. Public Citizen reports that about half of the crypto industry’s political contributions come from direct corporate expenditures, primarily from Coinbase and Ripple, with the rest coming from venture capitalists.
Despite these efforts, the industry faces significant challenges in gaining widespread voter support. A survey by Digital Currency Group published in May found that only 14% of voters in swing states own cryptocurrency, and 69% of them hold a negative view of crypto, compared to 31% who view it positively. The report noted, “Most voters are dissatisfied with the current financial system, and only a minority think crypto is the future of transacting, or a new way to prosperity.”
Adding to the regulatory tension, US President Joe Biden recently vetoed a resolution he described as a Republican-led effort to unduly limit the SEC’s ability to regulate crypto assets. SEC Chairman Gary Gensler has previously likened the crypto industry to a “Wild West” fraught with fraud and investor risks.
Monica Long emphasized the need for a shift in regulatory approach, stating, “The SEC appeared to have been on a ‘war path’ with the crypto industry in recent years, and everyone was hoping for a ‘change in tone’.”
