Kraken pledged $2 million to support two politically aligned organizations, emphasizing the need to protect core crypto freedoms in the United States.
In a Tuesday post on X, Kraken Co-CEO Arjun Sethi announced that the exchange would donate $1 million to the Freedom Fund PAC and boost its 2025 commitment to America First Digital by $1 million.
“The fight for crypto in the United States is far from over.”
Sethi
He highlighted threats to crypto’s foundational principles, such as self-custody and decentralized access, citing regulatory uncertainty, bans on privacy tools, and efforts to criminalize critical infrastructure.
Strategic Investments in Crypto’s Future
Sethi framed the donations as strategic investments to shape the legal and regulatory frameworks that will define the future of cryptocurrency.
“This is more than a fight for market infrastructure, it’s about defending individual rights in the digital age.”
Sethi
He clarified that Kraken is not endorsing a political party but is instead championing principles like privacy, self-custody, and innovation.
Both recipient organizations, Freedom Fund PAC and America First Digital are associated with pro-Trump and Republican-led initiatives, with the Freedom Fund PAC known as a pro-Trump super PAC supporting Republican candidates.
Evolving Political Landscape
The donations come amid significant legislative developments in Washington.
In July, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act passed the House with over 300 votes, including support from 102 Democrats.
In August, Senator Cynthia Lummis indicated that a digital asset market structure bill could reach President Donald Trump’s desk by the end of 2025, potentially before Thanksgiving.
This Senate bill, building on the bipartisan CLARITY Act passed in July, aims to clarify the regulatory roles of the SEC and CFTC in overseeing digital assets.
Crypto Advocacy Gains Momentum
As the 2026 legislative elections approach, crypto advocacy groups are ramping up their efforts.
Earlier this month, the Fellowship PAC launched with over $100 million to back pro-innovation, pro-crypto candidates in U.S. federal elections. It joins other crypto-backed groups like Fairshake PAC, which invested over $130 million in 2024 election ads and reported holding $141 million in assets for future electoral influence.
Kraken’s $2 million contribution underscores the growing role of crypto exchanges in shaping policy and defending the rights of crypto users.
The Crypto Lobby’s Shift to Partisanship
During the Biden administration, the government’s aggressive regulatory approach pushed many in the crypto industry toward the political right, transforming digital assets into a distinctly partisan issue.
A pivotal moment came in 2023 with the formation of Fairshake, a powerful super PAC backed by major players like Coinbase and Ripple. Fairshake poured tens of millions into key congressional races, targeting candidates perceived as anti-crypto while supporting those favoring regulatory reform. Though Fairshake claims neutrality, backing both Republicans and Democrats, Trump’s election victory has solidified pro-crypto donors’ alignment with the GOP.
Kraken joined other crypto firms in funding Trump’s inauguration, donating $1 million alongside Ondo Finance’s $1 million and Ripple’s $5 million in XRP. The industry’s tilt toward Republicans extends beyond Trump, as the GOP increasingly champions digital assets as a driver of economic competitiveness and financial freedom. This has led crypto donors to channel significant resources into Republican-aligned groups like America 1st Digital and Freedom Fund.
The exchange’s donation comes amid federal scrutiny of privacy tools. Developers of Bitcoin mixer Samourai Wallet and Ethereum-based Tornado Cash face potential criminal charges for allegedly enabling money laundering. Industry leaders warn that criminalizing essential blockchain infrastructure could threaten the ecosystem.
Ahead of the 2026 midterm elections, a surge of PACs is distributing funds across political parties, signaling a strategic push to frame digital assets as a constitutional issue. Tyler Winklevoss openly supported Kraken’s donation, reinforcing unity among major exchanges and investors.
Other PACs, like Fairshake, amassed nearly $300 million in 2024 from Coinbase, Ripple, and Andreessen Horowitz, strategically allocating funds to both parties to prevent digital assets from becoming a divisive partisan issue.
