Kraken, a cryptocurrency exchange, has revealed a new $2 million donation to PACs that seek to improve the legal environment for digital assets in the US.The action demonstrates the industry’s increasing efforts to influence legislation as Washington continues to discuss the best way to regulate cryptocurrency.
Kraken Co-CEO Arjun Sethi said on X on Tuesday that the exchange would increase its 2025 funding for America First Digital by an additional $1 million and donate $1 million to the Freedom Fund PAC.
He emphasized that the “fight for crypto” is still going on and cautioned that politicians and regulators are still putting pressure on topics like self-custody rights, access to decentralized tools, and the usage of privacy focused technology.
According to a statement from the exchange, “Kraken, one of the oldest digital asset companies in the U.S., feels it’s important to actively participate in public policy decisions that directly affect our users, employees, and the broader crypto ecosystem.”
Prioritize values above politics
Sethi noted that rather than supporting a specific political party, the contributions are meant to promote crypto principles, such as privacy, private ownership of digital assets, and innovation.However, both organizations that receive the funding have strong ties to Republican and pro-Trump campaigns, with the Freedom Fund PAC supporting Republican candidates.
According to a Kraken representative, “Crypto is not a partisan issue,” and the exchange will back politicians regardless of their party membership that advocate for transparent, well-balanced rules.
Kraken’s announcement coincides with the advancement of digital asset legislation by U.S. politicians.Strong bipartisan support helped the stablecoin-focused GENIUS Act pass the House in July.There is also another market structure bill in the works, and according to Senator Cynthia Lummis, it may be on President Donald Trump’s desk by the end of 2025.
The forthcoming measure is anticipated to provide long-needed regulatory clarity to the industry by elucidating the CFTC’s and SEC’s responsibilities in monitoring digital assets.
With over 50 million Americans already holding cryptocurrency, Kraken pointed out that politicians are under mounting pressure to put aside long-standing arguments and enact significant changes.
A surge in political activism supported by cryptocurrency
Kraken’s donation follows a broader pattern in which cryptocurrency companies finance political activism.With more than $100 million, Fellowship PAC was established earlier this month to back pro-crypto politicians in the next elections.One of the biggest organizations devoted to cryptocurrency, Fairshake PAC, has already invested over $130 million in campaigns and has over $140 million left over for other initiatives.
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Conclusion: Kraken’s $2 million commitment shows that the cryptocurrency sector is actively participating. Exchanges and advocacy organizations are investing heavily in Washington to make sure that the next wave of regulations safeguards, rather than restricts, the adoption of digital assets, with billions of dollars and the future of innovation at risk.
Source: Adapted from Kraken’s public statements and Cointelegraph reporting
Disclaimer: This post is provided for informative purposes only and should not be considered financial advice. Always do your own research before making an investing choice.