crypto payments fairshake sec-lawsuit regulatory-capture
related: Tech & Crypto Fairshake Crypto Industry
Who They Are
Ripple is a blockchain payments company founded in 2012 that has positioned itself as a cryptocurrency infrastructure provider focused on facilitating cross-border payments between financial institutions. The company developed the XRP Ledger and its native cryptocurrency (XRP), which it promoted as a replacement for traditional international payment systems. Ripple raised over $1.3 billion in funding from venture capital investors and has maintained a valuation exceeding $10 billion despite heavy regulatory scrutiny and ongoing litigation with the Securities and Exchange Commission.
What They Want
Ripple’s core political interests are preventing the SEC from classifying XRP as a security (which would subject it to securities laws), securing favorable regulatory treatment for cryptocurrency payments companies, and shaping financial regulation to permit cryptocurrency-based settlement systems to compete with traditional banking infrastructure. The company wants regulatory clarity that would allow it to sell XRP to retail customers and financial institutions without securities law restrictions.
Who They Fund
Ripple has contributed heavily to the Fairshake cryptocurrency PAC, one of the crypto industry’s largest political action committees, which spent over $50 million in the 2024 election cycle. The company has funded pro-crypto Republican and Democratic candidates and contributed to organizations lobbying for cryptocurrency-friendly regulation. Ripple executives have testified before Congress and maintained an active corporate advocacy operation focused on securing favorable regulatory treatment from Congress and federal agencies.
What They’ve Gotten
Ripple secured a partial legal victory in November 2023 when a federal judge ruled that XRP itself is not a security (though the company’s sales practices may have violated securities laws). The company’s political spending contributed to bipartisan interest in cryptocurrency regulation that would legitimize the industry without imposing strict securities law requirements. Ripple maintained operations despite an ongoing SEC enforcement action that alleged unregistered securities sales, demonstrating the company’s political influence over regulatory enforcement priorities. The company secured commitments from major financial institutions to use its payment system, validating its business model despite regulatory questions.
Class Analysis
Ripple exemplifies how new industries use political spending to prevent regulation before it’s established: by funding politicians and contributing to industry PACs like Fairshake, Ripple and its peers have shaped the regulatory landscape to favor self-regulation and light-touch oversight. The company’s successful argument that XRP is not a security despite being traded on retail exchanges reveals how cryptocurrency companies have captured financial regulators through political pressure. Ripple’s strategy of funding politicians regardless of party demonstrates that cryptocurrency regulatory policy has transcended partisan divides — both Republicans and Democrats have been captured by industry funding.
Sources
- SEC: SEC v. Ripple Labs Litigation (Tier 1)
- OpenSecrets: Fairshake PAC Profile (Tier 1)
- CoinDesk: Ripple XRP Legal Victory (Tier 3)
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