Kraken Puts $2M Behind Pro-Crypto PACs

Kraken $2 million crypto PACs will take center stage in U.S. politics after co-CEO Arjun Sethi announced Tuesday the exchange will donate $1 million to the Freedom Fund PAC—recently listed with the Federal Election Commission—and increase its 2025 pledge to America First Digital to $1 million.

The move underscores crypto’s deepening involvement in partisan politics.

Kraken Pledges $2M to Crypto PACs Backing Trump-Aligned Groups

Sethi argued the industry’s core principles—self-custody of assets, decentralized development without permission, and opting out of surveillance finance—remain at risk from regulatory uncertainty and enforcement actions.

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He framed these as “constitutional questions” that could shape financial freedom in the United States.

Kraken’s $2 million crypto PACs donation follows a $21 million Bitcoin commitment from Gemini co-founders Cameron and Tyler Winklevoss to launch the Digital Freedom Fund. Meanwhile, lawmakers are stepping up efforts: in July, the House of Representatives passed the FIT21 market-structure bill. This summer, the Senate advanced a federal stablecoin framework, signaling momentum after years of gridlock.

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Political spending continues to swell. A new super PAC, the Fellowship PAC, announced a $100 million budget this month. By contrast, industry groups such as Fairshake have reported bipartisan spending above $100 million since 2024. Moreover, Coinbase-aligned Stand With Crypto launched a member-driven PAC last year, reflecting efforts to avoid a hard partisan split.

Crypto’s presence in state races is also growing. In Georgia, PACs and the American Israel Public Affairs Committee have backed Republican Mike Collins with nearly $746,000 against Democratic Senator Jon Ossoff. Supporters argue that such donations are strategic investments to secure clear rules for developers and investors. However, skeptics warn that overt alignment with one party could narrow industry influence if power shifts.

The stakes extend beyond campaign finance. House leaders recently highlighted progress on market-structure and CBDC bills, while Senator Cynthia Lummis and allies introduced the BITCOIN Act to study a strategic reserve.

In parallel, Kraken has broadened its operations, from acquiring Breakout to strengthen advanced trading ahead of a possible IPO, to launching private markets for U.S. investors. The alignment of corporate expansion with political engagement shows how regulatory outcomes could directly influence exchange growth strategies. Kraken’s IPO ambitions could hinge on whether Washington delivers clarity—or gridlock persists.