Ripple co-founder backs venture launched by US senator's son
Ripple co-founder Chris Larsen was among investors in American Perpetuals Exchange Corp. (APEC), a derivatives platform founded by Theodore Gillibrand, son of US Senator Kirsten Gillibrand, according to a Politico report cited by CoinTelegraph. The ripple cofounder backs venture news lands as Gillibrand negotiates ethics rules in the CLARITY Act, legislation that could reshape US crypto markets including Ripple.
Chris Larsen, co-founder and executive chair of Ripple Labs, was reportedly among those backing the financial venture of Senator Gillibrand's son as negotiations over crypto market structure legislation continue in the Senate.
Key Takeaways
- Politico reported Larsen invested in APEC, a derivatives exchange founded by Theodore Gillibrand that raised about $30 million.
- Most investors contributed between $5,000 and $10,000; Larsen's exact stake was not disclosed.
- Senator Gillibrand is negotiating ethics provisions in the CLARITY Act while saying she has no involvement in her son's business.
- Democrats want ethics language added to the bill; Republicans expect a Senate vote as early as July.
- The Senate's holiday recess narrows the window to pass market structure legislation before the US election.
Who is backing Theodore Gillibrand's venture?
According to a Thursday Politico report, Larsen was one of a handful of investors backing the American Perpetuals Exchange Corp. (APEC), founded by Theodore Gillibrand. Although Larsen's exact contribution was not included in the report, the majority of investors contributed between $5,000 to $10,000 each into the derivatives platform, which reportedly raised $30 million.
The investment places a prominent Ripple executive alongside other early backers of a US-focused derivatives platform at a moment when perpetual futures and crypto-linked trading venues are drawing regulatory attention. For more on how policy and industry intersect, see our Fintech & Crypto Alerts coverage.
Why does this matter for the CLARITY Act?
The investment comes as the New York lawmaker is involved in negotiations over ethics provisions in the Digital Asset Market Clarity (CLARITY) Act, legislation expected to have a significant impact on crypto companies operating in the US, including Ripple.
Gillibrand said in May that no one would be voting for the bill without addressing ethics: "[T]he truth is, is that we cannot allow members of Congress, senior administration officials, presidents or vice presidents, to get rich off of these industries because of their insider status. It is the worst form of pay for play."
Democratic lawmakers have been pushing Republicans, who hold a majority in Congress, to support efforts to add ethics language to the CLARITY Act, citing US President Donald Trump's ties to the crypto industry. Republican leaders in the Senate are expecting the bill to pass the chamber in July, with Senator Cynthia Lummis saying in June that lawmakers were "working a little bit on ethics," decentralized finance and illicit transactions as part of negotiations.
What has Senator Gillibrand said?
A spokesperson for the senator referred CoinTelegraph to her June 18 statement saying that her son was "a grown adult starting his own independent business" and she had "no involvement in it whatsoever." CoinTelegraph reached out to APEC for comment but did not receive an immediate response.
The report highlights the tension between family business ties and legislative work on rules that could affect the broader crypto industry. The original reporting is available via Politico.
What's next for crypto market structure in Congress?
Senate Republicans hold a slim majority in the chamber, meaning they will need some Democratic support to meet the 60-vote threshold for CLARITY to pass. Lawmakers in the US Senate are on state work periods for the Independence Day holiday.
Scheduled to return to session on July 13 and leave for another month-long state work period in August, the window to pass crypto market structure is closing before US election day, which is expected to result in additional delays. Broader questions about how digital assets fit into regulated markets continue to draw attention from global policymakers as well.