TL;DR
Kraken, one of the largest U.S.-based crypto exchanges, has announced a $2 million donation to two Republican-aligned political action committees in order to strengthen the fight for crypto privacy rights. The donation, led by co-CEO Arjun Sethi, will allocate $1 million to the Digital Freedom Fund PAC and another $1 million to America First Digital.
Sethi described the initiative as an effort to ensure that cryptocurrency remains closely tied to principles of freedom, privacy, and permissionless innovation. He framed digital assets as not only a financial tool but also a safeguard for civil liberties, highlighting the urgent need to protect privacy-enhancing technologies from bans and excessive regulation.
During his remarks, Sethi argued that crypto embodies American ideals of independence and self-determination. He linked the philosophical origins of Bitcoin to the U.S. Bill of Rights, portraying it as a digital continuation of constitutional freedoms. According to him, regulatory uncertainty and the criminalization of privacy-oriented infrastructure represent constitutional challenges that could reshape the balance between government authority and individual rights.
Sethi also referred to cryptocurrency as a peaceful revolution that allows individuals to secure wealth, transact freely, and build decentralized systems without surveillance. He stressed that protecting these freedoms is essential for the long-term stability of both the digital economy and democratic institutions.
The Digital Freedom Fund has quickly emerged as a key player in Republican crypto policy, initially seeded with a $21 million Bitcoin donation from Cameron and Tyler Winklevoss. Meanwhile, America First Digital is managed by experienced political strategists, including former advisors to Senator Cynthia Lummis, one of the strongest pro-crypto voices in Congress.
These groups aim to shape legislation that encourages innovation while safeguarding financial privacy. Proposals under discussion include exemptions for small crypto transactions and tax reforms for staking.
Kraken’s support comes at a time of heightened scrutiny on privacy tools such as mixers and decentralized protocols, with several developers facing legal action. By aligning with political forces that favor crypto-friendly policies, Kraken signals its commitment to defending privacy as a cornerstone of the digital asset ecosystem.
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