Cryptocurrency exchange Kraken has committed $2 million in donations to political action committees (PACs) as part of a strategic effort to influence U.S. crypto regulation. Co-CEO Arjun Sethi announced on Tuesday, September 23, 2025, that Kraken will donate $1 million to the Freedom Fund PAC—a group recently registered with the Federal Election Commission—and increase its 2025 pledge to America First Digital to $1 million.
Sethi stated that the industry's core principles, including self-custody of assets, decentralized development, and privacy protections, remain under threat from regulatory uncertainty and enforcement actions. He described the donations as "strategic investments" in frameworks that will define crypto's future, emphasizing that Kraken is supporting principles rather than a specific political party, though both recipient groups are aligned with pro-Trump and Republican causes.
The move occurs alongside broader crypto political spending; for instance, Gemini co-founders recently committed $21 million in Bitcoin to launch the Digital Freedom Fund, and a new super PAC, Fellowship PAC, launched with a $100 million budget this month. Industry groups like Fairshake have reported bipartisan spending exceeding $100 million since 2024.
Legislative momentum is building, with the House passing the FIT21 market-structure bill in July and the Senate advancing a federal stablecoin framework. Senator Cynthia Lummis indicated that a digital asset market structure bill could reach President Donald Trump's desk by late 2025, potentially before Thanksgiving, building on the CLARITY Act which passed with bipartisan support.
Kraken's political engagement coincides with its corporate expansion, including the acquisition of Breakout to enhance advanced trading and preparations for a potential IPO, underscoring how regulatory outcomes may directly impact exchange growth strategies.