Ripple co-founder Chris Larsen is among the backers of a derivatives startup founded by U.S. Senator Kirsten Gillibrand’s son, a move drawing attention as lawmakers hash out the CLARITY Act — the high-stakes crypto market-structure bill expected to reshape U.S. digital-asset rules.
Politico reported Thursday that Larsen invested in American Perpetuals Exchange Corp. (APEC), a derivatives platform launched by Theodore Gillibrand. The company’s funding round raised roughly $30 million in total; most individual checks were in the $5,000–$10,000 range. Larsen’s precise contribution was not disclosed.
The timing is notable: Senator Gillibrand remains active in Senate negotiations over ethics-related language in the Digital Asset Market Clarity (CLARITY) Act. That legislation could materially affect how digital-asset companies — including Ripple — operate in the United States, and the connection between the founder’s investment and the senator’s role has prompted scrutiny in some quarters.
Larsen is already closely watched by the XRP market because of his sizable holdings and prior wallet activity. Crypto.news reported in May that Larsen controls an estimated 2.58 billion XRP across eight wallets tracked on XRPScan. Dormant wallets linked to him resumed activity in January 2025, moving more than $109 million worth of XRP to exchanges including Coinbase, Bitstamp and Bybit. Blockchain investigator ZachXBT later reported additional transfers of roughly 50 million XRP, with about $140 million ultimately landing on exchanges as XRP traded near record highs.
Politics around the CLARITY Act remain fraught. Democratic senators have urged stronger ethics provisions, citing President Trump’s ties to the crypto industry, while Republicans — who hold a narrow Senate majority — expect to try to pass the bill in July. Senator Cynthia Lummis has said negotiators are still working through ethics language as well as provisions related to decentralized finance and illicit-finance safeguards. Because the measure will require 60 votes to advance in the Senate, Republican leaders will need bipartisan support.
With a tight legislative calendar — senators return July 13 before a month-long August recess — observers say there’s limited time to finalize the bill before the fall election period slows congressional business. The CLARITY Act’s final form will be watched closely by industry participants and investors alike, given its potential to define the regulatory landscape for U.S. crypto firms.
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