Ripple Labs co-founder and executive chair Chris Larsen was reportedly among a small group of investors who backed a derivatives platform founded by the son of US Senator Kirsten Gillibrand, according to a Politico report published Thursday. The disclosure lands squarely in the middle of Senate negotiations over sweeping crypto legislation that would directly affect companies including Ripple.
The Venture: American Perpetuals Exchange Corp.
According to Politico, Larsen invested in the American Perpetuals Exchange Corp. (APEC), a derivatives exchange founded by Theodore Gillibrand, the senator’s son. While the exact size of Larsen’s contribution was not disclosed, most investors in the platform contributed between $5,000 and $10,000 each. APEC reportedly raised a total of $30 million, according to an earlier Fortune report from June 18.
Cointelegraph reached out to APEC for comment but did not receive an immediate response.
Ethics Controversy Collides With CLARITY Act
The timing is politically sensitive. Senator Gillibrand is actively involved in negotiations over ethics provisions in the Digital Asset Market Clarity (CLARITY) Act, a bill expected to have a significant regulatory impact on crypto firms operating in the United States. Ripple is among the companies that would be affected by the legislation.
Gillibrand stated in May that lawmakers would not support the bill without stronger ethics language, saying:
‘[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.’
A spokesperson for Gillibrand referred Cointelegraph to her June 18 statement, in which the senator said her son was ‘a grown adult starting his own independent business’ and that she had ‘no involvement in it whatsoever.’
Democrats Push Ethics Language as Senate Clock Ticks
Democratic lawmakers have been pressuring the Republican-controlled Senate to add ethics provisions to the CLARITY Act, pointing to President Donald Trump’s own ties to the crypto industry. Senator Cynthia Lummis said in June that lawmakers were ‘working a little bit on ethics,’ along with decentralized finance and illicit transactions, as part of ongoing negotiations.
Senate Republicans hold a slim majority and will need some Democratic support to reach the 60-vote threshold required for the bill to pass.
Window Closing for Crypto Market Structure Legislation
The compressed congressional calendar is putting pressure on crypto market structure legislation. With the Senate out until July 13 and another recess in August, the timeline for passing the CLARITY Act before election-related disruptions is shrinking rapidly. Republican leadership has publicly targeted a July passage in the chamber, but the ethics dispute and scheduling constraints are creating mounting obstacles.
