Ripple-backed candidate defeats Chakrabarti in $10 million race

A candidate backed by Ripple executive chairman Chris Larsen defeated Saikat Chakrabarti in San Francisco's congressional primary, underscoring the growing influence of crypto-industry campaign contributions in US elections.

A candidate backed by Ripple executive chairman Chris Larsen secured second place in San Francisco's congressional primary, defeating former Alexandria Ocasio-Cortez chief of staff Saikat Chakrabarti who spent $10 million of his own fortune on the race.

"This shows that crypto industry players are increasingly willing to deploy capital to shape political outcomes that could determine the regulatory future of digital assets," said Diana Chen, regulation and policy analyst at Edgen.

Connie Chan, a San Francisco supervisor endorsed by retiring House Speaker Nancy Pelosi, captured 28.6 percent of the vote against Chakrabarti's 14.9 percent, according to election results from California's 11th Congressional District. State Sen. Scott Wiener led the field at 41.3 percent. Chan's campaign raised less than $1 million, while Chakrabarti poured roughly $10 million of his personal fortune — amassed as an early Stripe employee — into the bid. Ripple's Larsen was among the prominent crypto executives backing Chan, alongside other industry donors who contributed to independent expenditure committees supporting her campaign.

The outcome signals that crypto-aligned political funding is becoming a decisive factor in Democratic primaries, potentially steering the party toward more industry-friendly regulatory positions. The general election between Wiener and Chan in November will test whether crypto-backed candidates can convert primary wins into broader electoral success.

Chakrabarti, who served as Ocasio-Cortez's chief of staff and was a key architect of the Green New Deal, ran an insurgent campaign that sought to position the race as a referendum on Democratic establishment politics. He hired more than 200 paid canvassers in one of the largest field operations in San Francisco's history, but struggled to overcome attacks that he was a carpetbagger with limited ties to local political circles. Records showed he had previously listed a Maryland home as his primary address and did not vote in several local elections.

Chan, by contrast, had served years on the Board of Supervisors and consolidated support from the city's progressive coalition. Pelosi called Chan her hand-picked successor, and the endorsement helped Chan overcome a significant fundraising disadvantage. David Ho, who ran an independent expenditure committee backing Chan, said the combined vote total of Chan and Chakrabarti — about 47,000 votes — exceeded Wiener's 44,500, suggesting a competitive general election if Chakrabarti's supporters shift to Chan.

The race attracted national attention as a test of whether crypto money could influence Democratic primaries. Ripple has been one of the most politically active crypto companies, spending heavily on lobbying and campaign contributions as it fights a long-running legal battle with the Securities and Exchange Commission. Larsen has personally donated to political action committees that support crypto-friendly candidates across both parties.

Chakrabarti, for his part, framed his campaign as a challenge to the influence of wealthy donors in politics. "We need a new generation of candidates powered by people and go to D.C. and not just fight Trump but build a society that works for everybody, not just the richest few," he told supporters on election night.

The outcome carries implications for the broader crypto regulatory landscape. A Congress with more members receptive to crypto industry positions could shift the balance on legislation ranging from stablecoin oversight to market structure rules. The SEC's enforcement-driven approach under Chair Gary Gensler has faced growing pushback from lawmakers who argue the agency is stifling innovation.

With Wiener and Chan advancing to the November general election, the race will serve as a bellwether for how crypto political spending plays in a deep-blue district where the industry's influence remains a contentious issue.

This article is for informational purposes only and does not constitute investment advice.