Ripple backs Marine veteran, pro-crypto lawyer in battle for Elizabeth Warren’s Senate seat
Warren has drawn the ire of the crypto industry for her fierce criticism of digital assets and her support of the SEC’s regulatory crackdown
John Deaton’s relentless support of Ripple’s battle with securities regulators is paying off.
The crypto firm is betting big on the Republican lawyer to defeat Massachusetts Sen. Elizabeth Warren in the battle for her U.S. Senate seat, FOX Business was first to report.
According to public Federal Election Commission filings, Ripple has donated $1 million to the Commonwealth Unity Fund, a new super PAC created by lawyer and crypto enthusiast James Murphy to replace the crypto critic Warren with Deaton.
Deaton is a Marine veteran, lawyer and political neophyte. He has gained significant name recognition as a crypto advocate, particularly in spirited social media defenses of Ripple, which was sued in 2020 by the Securities and Exchange Commission for issuing the digital token XRP without registration, thus allegedly violating securities laws. The suit was filed by former President Trump’s SEC chair, Jay Clayton, but pursued aggressively by Gary Gensler, President Biden’s appointee, and a close associate of Warren.
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Republican Senate candidate John Deaton. ((Photo by Suzanne Kreiter/The Boston Globe via Getty Images) / Getty Images)
Deaton’s intervention in Ripple’s three-year legal battle with the SEC was considered consequential in a New York court’s decision last year that Ripple’s native crypto token, XRP, does not constitute a security when sold on public exchanges. The ruling may face an appeal, but it has been regarded as a watershed moment for the $2 trillion digital asset industry in its quest to achieve legal clarity amid the SEC’s regulatory crackdown on crypto.
Ripple CEO Brad Garlinghouse and founder Chris Larsen donated the maximum $6,600 apiece to Deaton’s campaign last quarter, while Ripple has funneled $50 million to another super PAC, Fairshake, to help get crypto-friendly politicians elected to Congress. Super PACs are not allowed to donate directly to campaigns, but often use donations to fund big media spends that support or attack specific candidates.
Ripple CEO Brad Garlinghouse attends a panel discussion at the Singapore FinTech Festival in Singapore, on Nov. 12, 2018. (Wei Leng Tay/Bloomberg via Getty Images / Getty Images)
Fairshake has so far declined to use its $170 million war chest to influence the Deaton-Warren battle, despite having some success in other races.
Ripple confirmed the $1 million donation to Commonwealth Unity Fund to FOX Business.
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Murphy, who often provides commentary on crypto enforcement matters under the moniker "MetaLawMan" on X, said he’s been working on setting up the fund since April.
He told FOX Business that he put $50,000 of his own money into the fund because he believes Deaton can help bring some unity to Congress’s highest chamber.
"Now, more than ever, we need unifiers in the Senate," Murphy said, alluding to recent calls for Republicans and Democrats to turn down the political rhetoric following the assassination attempt on Trump at a rally in Pennsylvania. Trump was injured in the attack, while a rally attendee was killed and two others were wounded.
"I believe the people are ready to reject the divisive policies and actions of Elizabeth Warren," Murphy added.
Sen. Elizabeth Warren, D-Mass., speaks during a Senate Banking Committee hearing on Capitol Hill on June 13, 2023 in Washington, D.C. ((Photo by Michael A. McCoy/Getty Images) / Getty Images)
Warren has drawn the ire of the crypto industry for her fierce criticism of digital assets and her support of the SEC’s regulatory crackdown.
Her stronghold in the mostly blue state of Massachusetts and her popularity and influence throughout the growing progressive wing of the Democratic Party have made it difficult for any Republican to run a successful campaign against her throughout her 12 years as a senator.
A press official for Warren did not respond to a request for comment.
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Fundraising has also proven to be tougher for Deaton’s campaign this quarter compared with the prior period when he narrowly outraised Warren with $1.3 million over her $1.09 million. According to new FEC filings, Deaton raised $418,000 in the second quarter compared with Warren’s $1.4 million, bringing their cash-on-hand totals to $975,000 and $4.9 million, respectively.
Murphy, who plans to spearhead fundraising for the Commonwealth Unity Fund, hopes Deaton’s appeal to a large swath of pro-crypto voters who want to see Warren gone, combined with a de-emphasis on divisive politics will attract industry, and its deep pockets, to the cause.