- Vice President Kamala Harris’s presidential campaign concluded with significant financial challenges, ending up $20 million in debt despite raising more than $1 billion throughout the election cycle.
- If the SEC were to withdraw its legal appeal against Ripple, the price of XRP could increase significantly, allowing Harris to sell some of her donated XRP and cover her debt.
According to filings from the Federal Election Commission, the Harris campaign surpassed $1 billion in total fundraising, which is more than double the funds of President-elect Donald Trump, whose campaign reported less than $400 million in total fundraising and has a cash reserve of $36 million remaining. Nevertheless, the democratic committee grapples with a staggering $20 million debt, prompting Trump to advocate for unity in the face of political adversity.
In an X post, Donald Trump emphasized the importance of unity and cooperation among political figures, transcending party affiliations. Often characterized by fierce partisanship, Trump’s call for assistance represents a notable departure from the norm in U.S. politics. This perspective, however, has been met with skepticism from critics who argue that such calls for unity are often self-serving and lack genuine altruism.
Discussions have emerged surrounding the potential use of her donated XRP assets to cover campaign debts. At the heart of this discussion lies the contentious legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The SEC has asserted that XRP is a security and should be regulated accordingly. However, should the SEC decide to drop its ongoing litigation against Ripple, many analysts predict that the value of XRP could soar.
The suggestion is particularly intriguing, if Harris was indeed able to sell her XRP amidst a price surge triggered by a favorable legal outcome, it could allow her to significantly reduce her campaign debt. However, the complexities of the legal landscape surrounding XRP make this proposition more intricate than it appears.
Legal Perspectives Surrounding XRP Donations
Legal expert Marc Fagel, a former SEC attorney, weighed in on the implications of such a sale. He noted that any sales conducted by Harris would not require SEC registration, provided these transactions are not linked directly to the issuer of XRP. Fagel clarified that, as a retail holder of the cryptocurrency, Harris would be operating under different regulatory guidelines than Ripple.
Harris’s status as a non-issuer of XRP means that she would not be subject to the same registration requirements under the Securities Act, according to Fagel. This aligns with how any retail investor can freely sell their own XRP without facing the regulatory scrutiny typically directed at issuers.
This distinction is vital as it opens the door for different approaches to asset management, particularly for political figures like Harris who find themselves in need of financial solutions.
This prolonged case, lasting over four years, has frustrated the Ripple community. Despite the legal issues, Ripple’s price remains strong at around $0.55, with trading volume increasing by over 108% in one day.
