Ripple Throws Weight Behind John Deaton With $1 Million Donation in Senate Race

• Ripple’s $1 million donation to the Commonwealth Unity Fund aims to support pro-crypto candidates, including John Deaton.
• Deaton has raised $1.36 million for his Senate campaign, backed by prominent figures in the crypto industry.
• Senator Warren, an anti-crypto advocate, has raised over $4.9 million, drawing criticism for her stringent stance on cryptocurrency regulation.

The 2024 presidential election marks a pivotal moment for the crypto industry, with its significance in the political arena more pronounced than ever.

Both major US political parties have adopted definitive stances on cryptocurrency, and politicians are incorporating explicit views on its role in the market into their campaigns.

Additionally, crypto companies, such as Ripple, are actively using their influence to shape the discussion and outcomes related to these digital assets.

Ripple Funds Super PAC With $1M to Challenge Senator Warren

On Monday, July 15, Ripple contributed $1 million  to the Commonwealth Unity Fund, a super-political action committee (super PAC) formed by James Murphy, with the explicit aim of unseating Senator Elizabeth Warren and supporting John Deaton’s pro-crypto campaign in the Massachusetts Senate race.

This initiative is part of Ripple’s broader strategy to influence federal leadership, especially as the company navigates a contentious legal battle with the US Securities and Exchange Commission (SEC), which has proposed a substantial fine of at least $2 billion against Ripple.

According to FOX Business journalist Eleanor Terrett , Ripple’s significant donation to the Commonwealth Unity Fund is a strategic move to influence US politics and benefit the cryptocurrency sector.

The PAC’s founder, James Murphy, stressed the crucial impact of this election on future cryptocurrency regulations. He has personally invested $50,000 into the PAC and is encouraging the crypto community to support Deaton’s Senate campaign to counteract years of SEC regulatory actions.

Currently, Ripple is the main source of funding for the Commonwealth Unity Fund, contributing over 95% of the donations received by the PAC in the last quarter.

Deaton Raises Millions for GOP Senate Bid, Backed by Prominent Crypto Leaders

In February, Deaton officially declared  his candidacy for the GOP nomination in the Massachusetts US Senate race. He aims to challenge Democratic Senator Elizabeth Warren in the November election. Deaton is among multiple candidates vying for the Republican nomination, with the primary set for September 3.

In the first quarter, Deaton’s campaign revenue reached $1.36 million, surpassing Senator Warren’s then-$1.1 million, with significant contributions from key figures in the crypto industry.

Ripple executives Brad Garlinghouse and Chris Larsen each contributed the maximum allowed $6,600 in April.

Alongside Ripple executives, other important figures in the crypto community have supported Deaton. According to the Federal Election Commission, Deaton’s notable donors included SkyBridge Capital founder Anthony Scaramucci, Gemini co-founders Cameron and Tyler Winklevoss, and crypto executive Jameson Lopp of Casa, who contributed $3,300.

Other donors include Ripple attorney Stuart Alderoty, Kraken co-founder Jesse Powell, Cardano founder Charles Hoskinso n, and Coinbase’s Brian Armstrong.

While Ripple contributes to the pro-crypto super PAC, it is also involved in an ongoing legal dispute with the SEC over the sale of XRP, which the SEC alleges is an unregistered security. In July of the previous year, Judge Analisa Torres ruled that Ripple’s secondary sales of XRP conducted through a blind bid process did not violate securities laws.

However, she determined that direct sales of XRP to institutional investors were securities investment contracts.

The Massachusetts senatorial election has become a focal point for tensions between anti- and pro-crypto forces. Deaton was crucial in the Ripple vs. SEC case by championing the pro-crypto side. His legal efforts contributed to a decision that Ripple’s XRP sales do not constitute investment contracts.

Warren Raises $4.9M Amid Criticism for Stringent Regulation Stance

While Deaton garners donations from pro-crypto political action committees, Senator Elizabeth Warren, a seasoned politician, represents the anti-crypto stance. She is well-known for her efforts to restrict the expansion of cryptocurrencies and has advocated for their ban.

In stark contrast to Deaton, her fundraising efforts  have been strong, gathering over $1.1 million in the first quarter from 29,622 donors across 51,888 contributions. Notably, 99 percent of these donations were under $100, with an average donation amount of $22. Her campaign now boasts a total of more than $4.9 million.

Earlier this year, Senator Warren criticized the SEC for its methods in approving spot Bitcoin exchange-traded funds (ETFs) in the US, claiming the regulator had misapplied the law.

In February, she asserted that the cryptocurrency sector should adhere to the same regulations as traditional financial systems.  Senator Warren’s stance on cryptocurrency, which she views as needing stringent regulation, has frequently drawn criticism from crypto supporters who believe her approach suppresses innovation and limits the development of the digital asset industry.