Kraken $2M Donation to Pro-Trump Crypto PAC

Crypto exchange Kraken is moving beyond lobbying and into full-blown political action, pledging $2 million to pro-Trump political committees in a bold attempt to shape the rules that will define the future of digital assets.

The move signals how deeply intertwined U.S. crypto regulation has become with partisan politics—and how exchanges are increasingly willing to flex financial muscle to protect their vision of “digital freedom.”

In a post on X (formerly Twitter), Kraken co-CEO Arjun Sethi revealed a $1 million donation to the Digital Freedom Fund PAC and a doubled 2025 commitment of $1 million to America First Digital, both groups tied closely to Republican and pro-Trump circles.

“The fight for crypto in the United States is far from over.”

He warned that crypto’s principles face existential threats—from “regulatory uncertainty” and “enforcement by headline” to criminalization of core infrastructure and bans on privacy tools.

"As one of the largest and longest-standing digital asset businesses in the U.S, Kraken believes it is critical to engage in public policy issues that directly impact our clients, employees, and the broader crypto community."

America First Digital is spearheaded by GOP veterans Jason Thielman, ex–executive director of the National Republican Senatorial Committee, and Kristin Walker, former chief of staff to Senator Cynthia Lummis.

Lummis herself has been one of crypto’s fiercest champions, backing the BITCOIN Act, which proposes a massive $80 billion Bitcoin reserve.

Meanwhile, the Winklevoss twins have already given the Digital Freedom Fund a hefty boost, donating over $21 million in Bitcoin last month while openly declaring their PAC will work to elect Republicans, defeat Democrats, and advance Trump’s crypto agenda in the 2026 midterms.

Legislation at a Crossroads

Kraken’s move comes as Washington begins to take meaningful steps toward comprehensive crypto regulation. In July, the GENIUS Act—a stablecoin bill—sailed through the House with overwhelming bipartisan support, securing more than 300 votes, including 102 Democrats.

Then in August, Senator Lummis hinted that a landmark digital asset market structure bill could reach President Trump’s desk before Thanksgiving 2025.

The legislation would resolve a years-long power struggle between the SEC and CFTC, finally clarifying who regulates what. Lummis noted that the Senate’s draft would expand on the CLARITY Act, which already cleared the House in July, serving as the foundation for a unified framework.

Kraken framed its political donations as part of this critical moment. “More than 50 million Americans own crypto, and the message from the 2024 elections was clear: it’s time to move past the status quo, replace failed leadership, and deliver real market structure reform.”

Crypto survival Is More Than Just Tech, It's A Turf War

By cutting multimillion-dollar checks to pro-Trump PACs, Kraken is signaling that the crypto industry’s fight for survival is no longer just about code and innovation—it’s about winning the political turf war in Washington.

Sethi insists that Kraken’s support is “single-issue” and not partisan, but the reality is harder to ignore: both PACs receiving funds are tied to Republican and Trump-aligned agendas.

That alignment could accelerate pro-crypto policies if Republicans hold power—but it also risks locking digital assets into a partisan box, undermining efforts to present crypto as a universal, bipartisan issue.

This gamble reveals the industry’s high-stakes calculation: influence lawmakers now, or risk losing the very freedoms that underpin crypto.

Yet by tethering itself to one side of the political divide, Kraken and others could spark backlash that slows mainstream adoption.

What’s clear is that the battle over crypto’s future has moved beyond exchanges and blockchains. The next frontier will be fought in campaign war chests, committee hearings, and election cycles.

Whether Kraken’s bet pays off or backfires, one thing is certain: the war for crypto’s soul has entered the ballot box, and the stakes have never been higher.