Ripple co-founder and executive chair Chris Larsen has made a significant investment in a derivatives platform founded by Theodore Gillibrand, the son of U.S. Senator Kirsten Gillibrand, at a time when the senator is directly involved in shaping critical cryptocurrency legislation. According to a Politico report, the American Perpetuals Exchange Corp. (APEC) raised approximately $30 million, with most investors contributing between $5,000 and $10,000; Larsen’s exact stake was not disclosed.
The investment surfaces as Senator Gillibrand, a Democrat from New York, is one of the lawmakers negotiating the Digital Asset Market Clarity (CLARITY) Act—a bill intended to establish a comprehensive regulatory framework for digital assets in the United States. The legislation is expected to have direct implications for companies like Ripple, making Larsen’s financial link to the senator’s family a subject of heightened ethics scrutiny. Democratic lawmakers have been pressing for stronger ethics language in the bill, citing concerns about conflicts of interest and, in part, pointing to President Donald Trump’s ties to the crypto sector.
Meanwhile, Larsen remains a focal point for XRP holders due to his enormous cryptocurrency holdings. On-chain data tracked by XRPScan shows Larsen controls an estimated 2.58 billion XRP across eight wallets. In January 2025, previously dormant wallets linked to him moved over $109 million worth of XRP to exchanges including Coinbase, Bitstamp, and Bybit. Blockchain investigator ZachXBT later reported that Larsen-associated addresses transferred an additional 50 million XRP, with roughly $140 million reaching exchanges as XRP traded near all-time highs.
The Senate’s timeline to pass the CLARITY Act is tightening. Lawmakers return from their Independence Day recess on July 13, after which a month-long state work period begins in August. With the November elections likely to slow legislative action, the remaining window is narrow. Republicans, who hold a slim majority, need 60 votes to advance the bill, forcing them to court Democratic support. Senator Cynthia Lummis, a key Republican negotiator, indicated in June that talks were still covering ethics provisions, decentralized finance, and illicit finance concerns. The outcome of these negotiations—and any ethical fallout from Larsen’s investment—could determine whether the landmark crypto bill becomes law.
