Ripple co-founder Chris Larsen has quietly backed a derivatives startup tied to the son of U.S. Senator Kirsten Gillibrand — a development that lands amid high-stakes Senate negotiations over a major crypto market-structure bill.
What happened
- Politico reported Thursday that Larsen is among investors in American Perpetuals Exchange Corp. (APEC), a derivatives platform founded by Theodore Gillibrand. The company raised roughly $30 million in the funding round; most individual investors reportedly gave between $5,000 and $10,000. Larsen’s exact contribution was not disclosed.
Why it matters
- The investment comes while Senator Gillibrand is actively involved in Senate talks over the Digital Asset Market Clarity (CLARITY) Act, legislation expected to reshape regulation for digital-asset firms operating in the U.S. — including Ripple. That overlap is drawing attention from lawmakers and the crypto community given the optics of a senator’s family connection to a crypto business during high-stakes policymaking.
Larsen’s public profile and wallet activity
- Larsen is already a closely watched figure in crypto markets because of his sizable XRP holdings and past on-chain moves. Blockchain tracking sites have estimated he controls about 2.58 billion XRP across eight wallets.
- Crypto.news reported that dormant wallets linked to Larsen became active in January 2025, moving more than $109 million worth of XRP to exchanges including Coinbase, Bitstamp and Bybit. Later blockchain investigator ZachXBT said Larsen-linked addresses moved another 50 million XRP, with roughly $140 million in XRP ultimately reaching exchanges as the token traded near record highs.
Policy backdrop and timeline
- Democrats in the Senate are pushing Republicans to beef up ethics provisions in the CLARITY Act, citing potential conflicts and President Donald Trump’s ties to the crypto industry. Negotiations are reportedly also covering decentralized finance and illicit finance provisions.
- The Senate faces a tight calendar: senators return July 13 after the Independence Day recess, with another month-long state work period in August limiting time to complete the bill before the election cycle slows congressional activity. Republicans, who hold a slim majority, have signaled they expect to push the CLARITY Act through in July; because the measure will need 60 votes to overcome a filibuster, Democratic support remains crucial.
What to watch
- Any public disclosures about investor stakes in APEC or further comments from Senator Gillibrand on ethics language.
- Additional on-chain movements from wallets tied to high-profile industry figures, which tend to attract market attention.
- Progress and changes in the CLARITY Act text as negotiators work toward votes in a compressed timeframe.
This developing intersection of private crypto financing and public policymaking will likely keep scrutiny high as lawmakers try to finalize a bill that could set the U.S. regulatory baseline for digital assets.
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