Kraken pledged $2 million to political groups—$1 million to the Freedom Fund PAC and $1 million to America First Digital—to defend crypto users’ rights in the US, citing threats to privacy, self-custody and decentralized access amid growing regulatory debate.
-
Kraken donated $2 million to crypto-aligned PACs to protect self-custody and privacy rights.
-
Donations split: $1M to Freedom Fund PAC and $1M to America First Digital for 2025 efforts.
-
Context: donations come as U.S. stablecoin and market-structure bills advance in Congress.
Kraken $2 million donation to PACs: defending crypto rights in the U.S. — read how this affects regulation, privacy and 2026 election influence.
What did Kraken donate to PACs and why?
Kraken committed $2 million to crypto-aligned political groups, donating $1 million to the Freedom Fund PAC and increasing a $1 million pledge to America First Digital for 2025. The exchange framed the gifts as strategic investments to protect privacy, self-custody and decentralized access amid regulatory uncertainty.
Kraken announced $2 million in funding to Crypto PACs. Source: Arjun Sethi
How did Kraken describe the purpose of the donations?
Kraken Co-CEO Arjun Sethi said the funds are to “defend core crypto freedoms” in the U.S. He argued the threats include efforts to restrict privacy tools, limit self-custody and criminalize infrastructure. Kraken framed the donations as support for principles, not party affiliation, while both recipient groups are aligned with conservative causes.
How do these donations fit into the broader U.S. crypto policy picture?
Donations arrive as Congress advances market-structure and stablecoin legislation. The GENIUS Act passed the House with broad support, and lawmakers project a Senate bill could reach the White House by late 2025. Clarifying SEC and CFTC roles remains central to lawmakers and industry stakeholders.
Key policy references in public debate include the GENIUS Act and the CLARITY Act (House-passed). These texts aim to define regulatory jurisdiction over digital assets and stablecoins in the coming legislative cycle.
Frequently Asked Questions
How much did Kraken donate to political groups?
Kraken donated a total of $2 million: $1 million to the Freedom Fund PAC and $1 million to America First Digital (increasing its planned 2025 commitment). The exchange framed the funding as support for crypto-friendly legal and regulatory outcomes.
Will Kraken’s donations influence crypto regulation in the U.S.?
Political donations can fund advocacy and candidate support, which may indirectly shape legislative priorities. The donations arrive as Congress considers market-structure and stablecoin bills that will define SEC and CFTC roles.
Key Takeaways
- Donation amount: Kraken pledged $2 million to two political groups supporting crypto-friendly policies.
- Strategic purpose: The company framed the funds as protection for privacy, self-custody and decentralized access amid regulatory risk.
- Policy context: The move coincides with progress on the GENIUS Act, CLARITY Act developments and broader market-structure debates in Congress.
Conclusion
The Kraken $2 million donation underscores how major crypto firms are using political funding to protect digital-rights principles as U.S. lawmakers finalize market-structure and stablecoin rules. Watch for continued industry PAC activity ahead of the 2026 elections and for legislative milestones that will shape oversight of digital-asset markets.
Kraken committed $2 million to Freedom Fund PAC and America First Digital, citing a need to defend crypto users’ rights in the US.
Crypto exchange Kraken pledged $2 million to two politically aligned groups as part of what it calls an ongoing battle to defend core crypto freedoms in the US.
In a Tuesday post on X, Kraken 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. 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.
“At stake is more than market infrastructure. This is a fight for the core rights of individuals in a digital age,” he added.
Related: Crypto-backed Super PAC reports raising $78M for 2026 midterm efforts
Crypto principles, not political parties
Sethi described the donations as “strategic investments in the legal and regulatory frameworks that will define crypto’s future,” adding that Kraken is “not backing a party” but supporting principles such as privacy, self-custody and innovation. However, both groups receiving Kraken’s donations are aligned with pro-Trump and Republican-led causes, with the Freedom Fund PAC having been described as a pro-Trump super PAC backing Republican candidates.
The donations came amid a shifting political landscape in Washington, where several market structure bills have advanced. In July, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act passed with more than 300 House votes, including support from 102 Democrats.
In August, Senator Cynthia Lummis said that a digital asset market structure bill could reach President Donald Trump’s desk by the end of 2025, possibly before Thanksgiving.
The legislation will clarify the roles of the SEC and CFTC in regulating digital assets. Lummis said the Senate version will build on the CLARITY Act, which passed the House in July with bipartisan support, and likely serve as the base for the final bill.
Press inquiries to Kraken were noted; Kraken had not issued additional comment by publication.
Related: Crypto-Backed Group Gathers $141M Funding to Influence US Elections
Fellowship PAC launches with $100 million
Crypto advocacy groups are intensifying efforts ahead of the 2026 legislative elections. Earlier this month, a new crypto-focused political action committee, Fellowship PAC, launched with over $100 million in funding to support pro-innovation, pro-crypto candidates in US federal elections.
Fellowship joins a growing list of crypto-backed political groups, including the Fairshake PAC, which spent over $130 million in 2024 on ads. In July, Fairshake reported holding $141 million in assets to be used to influence upcoming elections.
