Crypto Super Pacs Get $25m Boost

Ripple Labs, a major cryptocurrency firm, said Wednesday that it's contributing $25 million to a network of industry super PACs working to influence elections this year, bringing the group's fundraising to around $110 million.

The move doubles Ripple's previous $25 million contribution to the effort, which is designed to help elect crypto allies and take down potential critics. So far, the investment has succeeded in boosting several crypto-friendly candidates in the House and Senate. The group is threatening to spend in Ohio and Montana Senate races that could determine control of the upper chamber.

Ripple, which has become a key crypto policy player because of litigation against the SEC, is now the super PAC network's largest contributor. Other major backers include the crypto exchange Coinbase and the venture capital firm Andreessen Horowitz.

“It’s critical for this industry’s success in the largest economy in the world to continue to champion pro-innovation, pro-regulation, pro-consumer candidates who are running for office, who don’t take a naive, ill-informed view that, somehow, crypto is inherently broken,” Ripple CEO Brad Garlinghouse said in an interview.

The super PAC network — which includes Fairshake, Defend American Jobs and Protect Progress — is among the top-raising outside groups this cycle. It now has more than $75 million in the bank, according to spokesperson Josh Vlasto.

Ripple's announcement follows a surprising month of Washington wins for crypto firms and investors. Votes on industry-backed bills revealed stronger-than-expected levels of bipartisan support, including from Senate Majority Leader Chuck Schumer and former House Speaker Nancy Pelosi (D-Calif.).

Crypto has also become an issue in the presidential race in recent weeks, with former President Donald Trump courting digital asset supporters and attacking President Joe Biden on the issue. The crypto super PAC group has been focusing on congressional elections and hasn’t said whether it will spend in the presidential contest.

Only a fraction of the U.S. electorate uses crypto, but Garlinghouse said he thinks it represents a political liability for the Biden administration, which has taken a more skeptical approach to the market and its potential benefits.

“This has become a real issue for the Democrats, and particularly for Biden,” he said. “I think they have grossly miscalculated how they have engaged on this topic.”

Garlinghouse said Ripple's new contribution was in the works prior to the industry's recent wins. He said Ripple will continue to donate to the effort in the years to come.

“This is not a one-time thing for us,” he said.