- Ripple co-founder Chris Larsen was reported to be an early investor in derivatives exchange APEC, founded by a senator’s son.
- The senator is directly involved in negotiations over ethics provisions in the CLARITY Act, and the bill is set to have a major impact on the business environment for US crypto companies, including Ripple.
- Democrats are calling for ethics provisions in the CLARITY Act, while Republicans are pushing to pass the bill this month and continuing negotiations over ethics issues, decentralized finance (DeFi) and illicit transactions.
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Ripple co-founder Chris Larsen invested in a derivatives exchange founded by the son of U.S. Senator Kirsten Gillibrand, triggering conflict-of-interest questions.
Cointelegraph reported on July 2 that Larsen was an early investor in American Perpetual Exchange, or APEC, founded by Theodore Gillibrand. APEC has raised about $30 million so far, and most individual investors reportedly contributed $5,000 to $10,000. The size of Larsen’s investment was not disclosed.
The issue has drawn attention because Gillibrand is directly involved in negotiations over ethics provisions in the CLARITY Act, a US digital-asset market structure bill. The legislation would have a significant effect on the business environment for US crypto companies, including Ripple.
Gillibrand said in May during discussions on ethics rules, “We cannot allow members of Congress, senior administration officials, the president and the vice president to use insider status to build wealth in that industry.” She added that “it is the worst form of pay for play.”
Gillibrand’s office said in a June 18 statement, “My son is an adult who started his business independently, and I was not involved in his business in any way.” Cointelegraph said it also requested comment from APEC but did not receive an immediate response.
Democrats are arguing that the CLARITY Act should include ethics provisions because of US President Donald Trump’s ties to the crypto industry. Republicans are pushing to pass the bill this month. Senator Cynthia Lummis said last month that negotiations were continuing over ethics issues, decentralized finance, or DeFi, and illicit transactions.
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