Crypto firms are jockeying for a political presence, and Kraken is one of them. Co-CEO Arjun Sethi announced Wednesday that the exchange has committed $2 million to two crypto-aligned political action committees.
Summary
- Kraken is doubling down on political influence, pledging $2 million to pro-crypto PACs—the Freedom Fund and America First Digital.
- While the exchange frames the move as a fight for digital freedom, both PACs largely support Republican candidates and Trump.
- The donations come amid a booming crypto market, now up 45% since January. Most Americans fear the rest of Trump’s economy is on the wrong track, a Reuters/Ipsos poll shows.
Kraken will give $1 million to the Freedom Fund PAC and $1 million to the America First Digital (A1stDigital) PAC.
According to the company, these types of donations are crucial to defend “core individual rights in the digital age.”
“We are not backing a party,” Sethi said, yet both PACs are explicitly aligned with the Republican Party and support President Donald Trump’s political initiatives.
“We are not backing a party. We are backing principles,” said Kraken co-CEO Arjun Sethi, mentioning self-custody, permissionless decentralized systems, freedom from surveilance in finance, and open infrastructure. “We will keep defending the right to own, move, and build with crypto in the United States,” he added.
While Sethi praised recent progress in Congress, he argues that core crypto freedoms remain at risk.
Regulatory overreach and bans on privacy tools, he says, are still an issue.
Crypto PACs build $140 million midterm war chest
Recall last October when the crypto industry spent $160 million on lobbying efforts.
The money helped. Since Inauguration Day, the crypto industry has enjoyed loose regulations and at least two White House-hosted parties. There was the March 2025 Digital Asset Summit, featuring major crypto firms to discuss a U.S. Strategic Bitcoin Reserve, as well as a May 2025 event for 220 top holders of the TRUMP meme coin.
Both events drew attention to the Trump administration’s engagement with crypto, while also raising ethical concerns over potential conflicts of interest.
Kraken, itself, directly benefited from pro-crypto regulators. The Securities and Exchange Commission (SEC) dropped a lawsuit against the firm in March.
Now, with the 2026 midterm elections approaching, the industry hopes to cement its gains by doubling down on political spending.
So far, crypto PACs have amassed $140 million in contributions from key industry players. These funds will go to candidates who support a pro-crypto agenda. In many cases, these candidates lean Republican, with Trump himself supporting the agenda.
It’s worth noting that the most significant piece of pro-crypto legislation, the GENIUS Act, was a bipartisan effort. Senator Bill Hagerty introduced the bill, which establishes a regulatory framework for payment stablecoins in the U.S. It passed the Senate 68–30 and the House 308–122, with support from both parties, and was signed into law by Trump on July 18.
Still, Kraken wants more.
“The fight for crypto in the United States is far from over,” Sethi said.
Kraken’s donations come as Trump’s most recent approval rating among Americans falls to just 41%.
Approximately 54% of those polled in a Reuters/Ipsos survey believe the economy is headed in the wrong direction, up from previous months.
Since January, the cryptocurrency industry has experienced significant growth, with the global market capitalization increasing from approximately $2.76 trillion in April to over $4 trillion by September.
That’s a spike of around 45% in just eight months.
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