The cryptocurrency world is buzzing after Ripple CEO Brad Garlinghouse publicly linked the formation of Fairshake, a powerful cryptocurrency-focused super political action committee (PAC), directly to the SEC’s regulatory approach under Chair Gary Gensler. In a recent interview with CBS News, Garlinghouse didn’t mince words, stating that the PAC’s existence is a direct reaction to what he termed a “war on crypto.” He explicitly stated that without the SEC’s aggressive actions under Gensler’s leadership, Fairshake likely wouldn’t exist.
Garlinghouse revealed that Fairshake was formed by Ripple and two other unnamed companies who felt compelled to collectively voice their concerns regarding the regulatory environment. This move comes amidst Ripple’s ongoing, nearly four-year-long legal battle with the SEC over the status of XRP, the cryptocurrency central to Ripple’s operations. The high-stakes legal fight underscores the significant tension between the cryptocurrency industry and the SEC under Gensler.
The impact of Fairshake on the 2024 election cycle was substantial. As the largest crypto-focused super PAC, Fairshake boasted a war chest exceeding $204 million, making it a major player in the political landscape. Ripple’s contribution to this significant sum was a remarkable $45 million, showcasing the company’s commitment to shaping the future of cryptocurrency regulation. Coinbase followed closely behind, pledging nearly $45.5 million. This unprecedented level of spending highlights the industry’s growing political influence and concern over regulatory uncertainty.
Fairshake’s activities weren’t limited to simply supporting candidates; the non-partisan committee strategically spent $40.69 million throughout the election cycle. Over $27 million went towards supporting candidates from both Republican and Democrat parties, while $13.56 million was used to oppose primarily Democratic candidates. Remarkably, Fairshake boasted a 67% success rate in supporting winning candidates, demonstrating its significant impact on election outcomes.
Garlinghouse’s comments come at a pivotal moment. With President-elect Donald Trump’s nomination of Paul Atkins as the new SEC Chair, the cryptocurrency industry anticipates a potential shift in regulatory approach. Atkins’ appointment is seen by many as a potential move away from the enforcement-heavy stance adopted under Gensler, sparking hope for a more favorable regulatory environment for digital assets.
Meanwhile, XRP, currently the third-largest cryptocurrency by market capitalization, experienced a 5.39% price drop in the last 24 hours, trading at $2.46. This price fluctuation, while significant, doesn’t necessarily reflect the broader implications of Garlinghouse’s revelations and the potential changes in the regulatory landscape ahead.
