Ripple CEO Claims SEC’s Crypto Stance Sparked Birth of ‘Fairshake’ Super PAC
A super political action committee known as Fairshake, which emerged with backing from Ripple, may have arisen in direct response to the regulatory posture taken by U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler. Ripple’s chief executive, Brad Garlinghouse, revealed during a “60 Minutes” interview on CBS Sunday that a coalition of companies formed the PAC largely to counter what he described as a “war on crypto.”
According to Garlinghouse, the SEC’s handling of cryptocurrency markets was a central motivator behind Fairshake’s creation. “I’m not sure Fairshake would exist,” he said, had the agency chosen a different approach.
In the latest election cycle, Fairshake reportedly secured more than $200 million, drawing contributions from major crypto platforms and investment firms, including Coinbase and a16z. The organization states that it only supports political candidates through independent expenditures and aims to back those who prioritize keeping the United States at the forefront of innovation.
Fairshake’s influence extended down the ballot, including the Ohio Senate contest. The PAC funneled $12 million into the campaign of Republican candidate Bernie Moreno, who favors pro-crypto policies. Moreno’s victory in November over incumbent Democrat Sen. Sherrod Brown—an outspoken crypto critic—further underscored the group’s impact.
Meanwhile, Gensler announced last month that he will step down from his role on January 20, 2025, aligning with President-elect Donald Trump’s inauguration. Throughout his tenure, Gensler maintained that most digital currencies resemble securities and repeatedly urged crypto ventures to register with the SEC. Many in the industry argue that the regulatory framework, originally designed for traditional markets, is ill-suited to digital assets, making compliance practically unworkable.
Ripple, for its part, has been locked in a legal struggle with the SEC for several years. Back in 2020, during Trump’s first term, the commission accused Ripple of raising $1.3 billion through sales of XRP, which the agency labeled an unregistered security. More recently, Trump tapped Paul Atkins, known for being crypto-friendly, as Gensler’s successor at the SEC starting in 2025.
On December 6, shortly before the Financial Stability Oversight Council (FSOC)—an arm of the U.S. Department of the Treasury—Gensler reiterated that market participants would face investor harm if they fail to comply with SEC rules. He argued that without adherence to longstanding standards surrounding disclosures, conflicts of interest, and business conduct, investor trust could erode, even if digital assets currently make up less than one percent of capital markets.
Also featured on “60 Minutes” was former SEC enforcement lead John Reed Stark, who contended that the election outcomes send a clear signal for the commission to ease its pressure on the crypto sector. “As far as these election results are concerned, the clear mandate is the SEC needs to lay off crypto,” Stark said. “And that’s exactly what’s gonna happen.”