Chris Larsen's $1 million contribution to Harris PAC indicates that the crypto industry is becoming more supportive of Vice President Kamala Harris.

• Chris Larsen, co-founder of Ripple, donated $1 million in XRP tokens to Future Forward, a political action committee backing Vice President Harris' presidential campaign.
• Larsen stated in an interview with CNBC that she is familiar with individuals who have grown up in the innovation economy their entire lives.
• With three weeks until Election Day, more of the crypto industry is showing support for Harris.

Chris Larsen, unlike other crypto companies and their executives, has not invested tens of millions of dollars in Donald Trump's bid for the presidency.

Ripple's co-founder and chairman donated $1 million in XRP tokens to Future Forward, a super PAC backing Vice President Kamala Harris' campaign.

Larsen, who has supported candidates from both sides of the aisle in recent years, stated in an interview with CNBC on Monday that his comfort level with Harris stems from discussions he has had with individuals within the campaign and his observations of the vice president since she assumed the role of president in July.

It helps that Harris is from the Bay Area.

"Larsen stated that she believes the individual understands the concept of the innovation economy because she has grown up with it her entire life. In contrast, the Biden administration may not have recognized this connection or failed to make it between empowering workers and ensuring American companies remain dominant in their respective industries."

In February, Larsen donated $6,600 to Harris, which was the maximum personal contribution allowed, and also gave $100,000 to the Harris Action Fund PAC, five months before she became the Democratic presidential nominee.

According to FEC data compiled by James Delmore and independently verified by CNBC, Larsen has given around $1.9 million to support Harris' campaign directly and through PACs.

According to Forbes, Larsen, 64, has a net worth of $3.1 billion, mainly from his ownership of XRP and his role in Ripple, which offers blockchain technology to financial services companies.

The crypto industry has emerged as a significant player in political fundraising, with nearly half of all corporate money flowing into elections coming from this sector, according to a recent report from Public Citizen.

During the last presidential election year, the industry raised roughly 13 times the amount it brought in, with Coinbase, Ripple, and venture firm Andreessen Horowitz accounting for most of the business donations.

Nearly two-thirds of crypto contributions have been directed towards supporting Republicans or opposing Democrats, as per Delmore's analysis of FEC data. Trump has received over $4 million in virtual tokens, according to an FEC filing. In July, the ex-president keynoted a major bitcoin conference in Nashville, Tennessee.

'More pragmatic approach'

Larsen has recently donated $1 million to Democratic Pennsylvania Gov. Josh Shapiro, $7,000 to John Deaton, a Massachusetts Republican challenging Elizabeth Warren, $250,000 to the Nancy Pelosi Victory Fund, and contributed to a pro-Biden PAC in 2020.

Larsen stated to CNBC that he believes Harris will bring a "more pragmatic approach and clear rules" to the crypto industry, in contrast to Gensler's "open hostility" and "aggressive crackdowns" on companies, including Ripple, which has led many in the space to support Trump.

In January, Brad Garlinghouse, CEO of Ripple and a donor to both political parties, labeled Gensler as a "political liability."

"Gensler's actions have resulted in a situation where the domestic industry has been weakened, and foreign operations have been strengthened. This does not make sense, and Gensler is widely disliked in Washington, D.C."

Gensler's office did not respond to CNBC's request for comment.

Ripple's legal chief stated in June that the company has spent over $100 million on litigation to defend itself against civil charges brought by the SEC. In 2020, before Biden took office, the SEC accused Ripple, Garlinghouse and Larsen of violating securities laws by acting as unregistered brokers of digital currency tokens, which the SEC regulates as securities. The SEC later dismissed the charges against the two Ripple executives, and the company has denied it broke securities laws. They remain in active litigation.

The agency recently filed a notice of appeal in its ongoing case with Ripple.

Fairshake, a pro-crypto super PAC, has received about $50 million from Ripple and has been supporting candidates across the political spectrum.

Harris has been gaining momentum within the crypto community.

After two days of Biden's withdrawal from the race, Uniswap's legal chief, Marvin Ammori, donated funds to the Harris Action Fund. Additionally, Uniswap is facing allegations of violating U.S. securities laws.

Anthony Scaramucci, a former White House communications director under Trump, has given over $36,000 to two PACs supporting the Democratic nominee. Scaramucci states that he is part of a group of crypto advocates collaborating with Harris to create her campaign's digital asset policies and to help the vice president differentiate the Democrats from Sen. Warren.

Ben Horowitz, a venture capitalist and co-founder of Andreessen Horowitz, has a substantial portfolio of crypto companies. In July, he and his partner Marc Andreessen announced plans to donate significantly to PACs supporting Trump's presidential campaign, citing his support for the "little tech agenda."

Early October saw Horowitz change his stance on the election. He announced that he and his wife, Felicia, would be making a significant personal contribution to Harris' campaign. The couple had known Vice President Harris for over a decade and considered her a dear friend.

In a public address, Harris acknowledged cryptocurrency a few weeks prior, in late September.

She stated at a $27 million fundraiser in New York that we will promote innovative technologies such as AI and digital assets while safeguarding our consumers and investors.

The Harris campaign presented its "Opportunity Agenda for Black Men" on Monday, which includes a plan to establish a framework for cryptocurrency in the U.S. to protect those assets. The campaign stated that over 20% of Black Americans have owned or currently own digital currencies.

Although Larsen had a history of donating to Democrats, he faced criticism on social media following the revelation of his latest contribution, which was exposed on CNBC on Friday.

Kamala's candidacy and the policies she would implement have sparked skepticism among the Ripple community and the broader crypto community, according to Delmore, who mirrored the prevailing online sentiment.

Larsen dismissed the criticism and stated that he disregards social media.

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