Exchange commits funding as U.S. debates digital asset laws
Kraken has pledged $2 million to political advocacy groups in what its leadership calls the ongoing “fight for crypto” in the United States. The move underscores how exchanges and industry players are stepping up political involvement as lawmakers debate the future of digital assets.
Funding to defend crypto rights
Co-CEO Arjun Sethi announced that Kraken will contribute $1 million to the Freedom Fund PAC and an additional $1 million to America First Digital in 2025. Sethi described the donations as necessary to protect self-custody, privacy, and decentralized access, which he warned remain under pressure from regulatory uncertainty and attempts to restrict privacy tools.
“The fight for crypto in the United States is far from over,” Sethi said, stressing that “this is a fight for the core rights of individuals in a digital age.”
Political landscape and new legislation
The donations arrive as Congress considers landmark digital asset bills. The GENIUS Act on stablecoins passed the House in July with bipartisan support, while the CLARITY Act aims to define the roles of the SEC and CFTC in overseeing crypto markets. Senator Cynthia Lummis recently suggested that a final digital asset framework could reach the president’s desk before the end of 2025.
This evolving backdrop has drawn increased funding from the industry. Advocacy groups are preparing for the 2026 midterm elections, with new initiatives such as the Fellowship PAC, which launched this month with over $100 million to back pro-innovation candidates.
Analysts note that the crypto sector is becoming more politically organized as the stakes rise. “Exchanges know that without a favorable legal framework, innovation in the U.S. could stall,” . “These donations highlight the urgency of securing laws that balance consumer protection with innovation.”
Kraken’s decision to fund advocacy groups signals a strategic shift toward political engagement, reflecting the industry’s belief that regulatory outcomes will shape its future. With billions in digital assets at stake and bipartisan negotiations underway, the next year could prove decisive in defining how crypto evolves in the U.S.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.