Exchange Giant Kraken Pledges $2 Million to Freedom Fund PAC and America First Digital
Cryptocurrency exchange Kraken pledged $2 million to two politically aligned groups on Tuesday as part of what it calls an ongoing battle to defend core crypto freedoms in the United States. According to Cointelegraph, Co-CEO Arjun Sethi announced that the exchange will donate $1 million to the Freedom Fund PAC and increase its 2025 commitment to America First Digital to $1 million.
"The fight for crypto in the United States is far from over," Sethi wrote in a Tuesday post on X. He warned that crypto's foundational rights like self-custody and decentralized access remain under threat from regulatory uncertainty, bans on privacy tools, and efforts to criminalize infrastructure. Sethi described the donations as strategic investments in the legal and regulatory frameworks that will define crypto's future.
Both groups receiving Kraken's donations are aligned with pro-Trump and Republican-led causes. The Freedom Fund PAC has been described as a pro-Trump super PAC backing Republican candidates. Sethi stated that Kraken is not backing a party but supporting principles such as privacy, self-custody, and innovation.
Strategic Investment in Crypto's Political Future
This donation places Kraken among major cryptocurrency companies making substantial political investments to shape regulatory outcomes. The exchange's commitment comes as several market structure bills have advanced in Washington's shifting political landscape. In July, the GENIUS Act passed with more than 300 House votes, including support from 102 Democrats.
Senator Cynthia Lummis has indicated that a digital asset market structure bill could reach President Donald Trump's desk by the end of 2025. The legislation will clarify the roles of the SEC and CFTC in regulating digital assets. CNBC reports that crypto-related PACs pulled in over $245 million for the 2024 election cycle, with nearly half of all corporate dollars coming from the crypto industry.
The crypto advocacy movement has gained momentum following Trump's election victory and his continued support for making America the crypto capital of the planet. We recently covered how fifteen US states have begun taking steps toward establishing government-owned Bitcoin reserves, with Pennsylvania leading the initiative by introducing the first state-level Bitcoin reserve bill in November 2024.
Crypto Industry Doubles Down on Washington Influence
The cryptocurrency sector has dramatically expanded its political spending in recent years as companies seek favorable regulatory frameworks. Sludge analysis shows the crypto industry spent more than $18.4 million on federal lobbying in the first half of 2025, representing a record pace for the sector.
Kraken's donation joins a broader pattern of crypto companies increasing political expenditures. Fairshake, the super PAC bankrolled by crypto's biggest players, announced it has $116 million in cash on hand for the 2026 midterm election cycle. Major backers include Coinbase, Andreessen Horowitz, Jump Crypto, Uniswap Labs, and Ripple Labs.
This political spending surge coincides with the crypto industry's push for comprehensive market structure legislation. The House advanced several crypto-related bills during its "crypto week," including measures on payment stablecoins and market structure. Industry observers note that crypto companies view these political investments as necessary to counter years of regulatory uncertainty under previous administrations.
The expansion of crypto political spending reflects the industry's maturation and recognition that regulatory outcomes will determine its long-term viability in the United States. As companies like Kraken commit millions to political advocacy, the sector appears positioned to maintain significant influence over cryptocurrency policy development through the 2026 election cycle.
