Ripple's Chris Larsen quietly bankrolls senator's son's $30M perpetuals play 🏦

Chris Larsen, co-founder and executive chair of Ripple Labs, was among a handful of investors who backed American Perpetuals Exchange Corp. (APEC), the crypto derivatives platform founded by Theodore Gillibrand, the 22-year-old son of US Senator Kirsten Gillibrand, according to a Thursday Politico report. The startup raised $30 million at a $300 million valuation in an early-stage round led by Lux Capital, with most investors contributing between $5,000 and $10,000 each. Other backers included hedge fund manager John Griffin, investor Mark Ein, and Anduril Industries founder Palmer Luckey. Larsen's exact contribution was not disclosed. Annica Benning, a spokesperson for Theo Gillibrand, did not immediately respond to requests for comment.

The investment arrives as Senator Kirsten Gillibrand, a New York Democrat, is engaged in negotiations over ethics provisions in the Digital Asset Market Clarity (CLARITY) Act, a market-structure bill expected to significantly affect crypto firms operating in the US, including Ripple. In May, Gillibrand said, "[T]he truth is, is that we cannot allow members of Congress, senior administration officials, presidents or vice presidents, to get rich off of these industries because of their insider status. It is the worst form of pay for play." A spokesperson for the senator referred inquiries to her June 18 statement, in which she said her son was "a grown adult starting his own independent business" and that she had "no involvement in it whatsoever." Cointelegraph reached out to APEC for comment but did not receive an immediate response.

APEC has met with staff from the SEC-CFTC Harmonization Initiative as it pursues a designated contract market license. Republican leaders in the Senate are aiming to pass the CLARITY Act in July, and Senator Cynthia Lummis said in June that lawmakers were "working a little bit on ethics," decentralized finance, and illicit transactions as part of the negotiations. Senate Republicans hold a slim majority and will need Democratic support to meet the 60-vote threshold. Senators are currently on a state work period for the Independence Day holiday and are scheduled to return to session on July 13 before departing for another month-long state work period in August, leaving a narrow window before the US election.