Regulation
Kraken Founder Donates $1 Million to Donald Trump Campaign
Jesse Powell, co-founder and chairman of cryptocurrency exchange Kraken, has donated $1 million to former President Donald Trump’s 2024 election campaign. The donation, primarily in Ethereum (ETH), marks a pivotal moment in the crypto community’s engagement in U.S. electoral politics.
Jesse Powell, who transitioned from his role as CEO to chairman of Kraken in 2022, made his support for Trump public in a detailed post on X. In his announcement, Powell highlighted Trump’s pro-crypto stance as critical to the future of blockchain technology in the United States. “I am thrilled to join other leaders in our community in uniting behind the only major-party pro-crypto candidate in the 2024 presidential election so that the United States can continue to remain a leader in blockchain technology,” Powell explained in his job.
The crypto industry is united behind Trump
Powell’s decision to financially support Trump comes amid growing discontent within the cryptocurrency industry with the Biden administration’s current regulatory strategies, which many see as restrictive and detrimental to the innovation ecosystem. Powell specifically criticized the Biden administration’s “unchecked regulatory campaign by law enforcement,” noting opposition from figures such as Senator Elizabeth Warren and SEC Chairman Gary Gensler, who are seen as less supportive of the crypto industry.
These regulatory challenges are a major concern for cryptocurrency entrepreneurs and investors who believe strict policies could hinder the United States’ ability to compete with other countries that have clearer and more favorable crypto regulations. The sentiment expressed in Powell’s statement reflects a broader fear that the United States could fall behind in the global race for blockchain innovation and leadership.
Donald Trump’s stance on Bitcoin and cryptocurrencies has evolved significantly over time. Initially skeptical, Trump has recently adopted a strongly supportive tone toward the Bitcoin and crypto industry. This shift is evident in various speechess, the transition from his campaign to accept donations in various cryptocurrenciesa strategic decision that has attracted considerable support from prominent figures in the crypto world.
Personalities such as Cameron and Tyler WinklevossThe co-founders of cryptocurrency exchange Gemini and Ark Invest CEO Cathie Wood also expressed support for Trump, citing his progressive stance on crypto as a key factor. These endorsements from high-profile industry figures highlight a potential pivot in the political dynamics surrounding cryptocurrency.
In contrast, President Joe Biden’s administration has not clearly expressed a definitive position on crypto, but has pursued a stealthy policy.Operation Choke Point 2.0Despite this, reports have surfaced that the Biden campaign is looking to engage with the crypto community. The campaign has reportedly been in talks to accept cryptocurrency donations via Coinbase Commerce, signaling a possible opening toward digital asset adoption.
As the 2024 US presidential election approaches, the issue of regulating cryptocurrencies is poised to become a significant topic of debate. Jesse Powell’s substantial donation and Donald Trump’s public support demonstrate a growing propensity among cryptocurrency industry executives to support candidates they believe will champion a favorable regulatory environment.
Additionally, Trump has hinted at the possibility of pardoning Ross Ulbricht, the founder of Silk Road, a move that has been widely supported within the Bitcoin and crypto community. Powell’s use of the hashtag “#freeross” significantly underscores Trump’s past commitments in this regard.
At press time, BTC was trading at $61,541.
Featured image of X @jespow, chart from TradingView.com