Kraken Doubles Down on Political Influence, Donates $2 Million to Pro-Crypto PACs Amid Booming Crypto Market

Kraken is committing $2 million to two pro-crypto PACs, the Freedom Fund and America First Digital, despite regulatory wins. The donations come amid a booming crypto market, now up 45% since January. The exchange frames the move as a fight for digital freedom, but both PACs largely support Republican candidates and Trump.

In a significant move, Kraken, one of the world's largest cryptocurrency exchanges, has pledged $2 million to two pro-crypto political action committees (PACs), the Freedom Fund and America First Digital. This donation comes amidst a booming crypto market, which has seen a 45% increase since January, and despite recent regulatory wins for the industry. Kraken frames the donation as a fight for digital freedom, but both PACs largely support Republican candidates and Trump.

The donation announcement was made by Kraken’s co-CEO, Arjun Sethi, who emphasized the company's concerns about the increasing challenges facing cryptocurrency in the United States. These challenges include unclear regulations, punitive enforcement practices, restrictions on privacy tools, and efforts to criminalize crypto infrastructure Kraken Donates $2M to Pro-Trump Crypto PACs in 2025 Power Move^[2]. Sethi described these challenges as raising serious questions about how personal financial freedom aligns with the concept of individual rights in society Kraken Pledges $2 Million to Pro-Crypto Conservative PACs^[3].

The Freedom Fund PAC, launched in August with a $21 million Bitcoin donation from Gemini founders Cameron and Tyler Winklevoss, has already secured $1 million in contributions and focuses on advancing Trump’s crypto agenda within the GOP Kraken Donates $2M to Pro-Trump Crypto PACs in 2025 Power Move^[2]. America First Digital, led by Jason Thielman, former NRSC executive director, and Kristin Walker, ex-chief of staff to pro-crypto Senator Cynthia Lummis, supports the Bitcoin Act, which aims to allow the U.S. strategic reserve to buy $80 billion in Bitcoin Kraken Donates $2M to Pro-Trump Crypto PACs in 2025 Power Move^[2].

Kraken's latest pledge adds to its earlier contributions to political action committees. In January 2024, its parent company, Payward Inc., donated $750,000 to Fairshake PAC Kraken Donates $2M to Pro-Trump Crypto PACs in 2025 Power Move^[2]. These donations signal Kraken’s support for self-custody, decentralized systems, and opting out of surveillance-driven financial platforms Kraken Pledges $2 Million to Pro-Crypto Conservative PACs^[3].

The donations by Kraken and other crypto exchanges illustrate how the crypto industry has shifted from reactive lobbying to proactive political engagement, channeling funds through PACs to influence legislative agendas and regulatory oversight. This proactive approach may be the reason for positive regulatory insights in the U.S. Congress, which has advanced several bills to establish clearer rules for digital asset markets, such as the GENIUS Act and the CLARITY Act Kraken Donates $2M to Pro-Trump Crypto PACs in 2025 Power Move^[2].

However, federal agencies continue to pursue enforcement actions against exchanges and restrict privacy tools, creating uncertainty for the sector. This dual approach has prompted companies like Kraken to step up their political involvement.