Kraken’s Powell donates $1m to Trump to unite behind ‘only pro-crypto’ candidate

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As a researcher with a background in the crypto industry, I’ve closely followed the regulatory landscape shaping this space, particularly in the United States. Jesse Powell’s decision to donate $1 million in Ethereum (ETH) to former President Donald Trump and his criticisms of the Biden administration’s approach to regulating digital assets resonate with my perspective.

As a cryptocurrency market analyst, I’ve taken note of the founder of Kraken Exchange voicing concerns over the Biden administration’s current approach to digital assets. In my opinion, this stance may potentially hinder the United States’ competitive edge within the dynamic and rapidly evolving crypto market.

Jesse Powell, the founder and ex-CEO of Kraken crypto exchange, gave $1 million worth of Ethereum (ETH) to Donald Trump prior to the presidential elections. According to Powell’s Jun. 28 post on X, this donation was motivated by his concerns over the critical stance towards the industry taken by Senator Elizabeth Warren and SEC Chair Gary Gensler.

I’ve recently made a personal donation of approximately $1 million, predominantly Ethereum, to @realDonaldTrump’s cause. For far too long, the crypto sector has faced criticism from Elizabeth Warren, Gary Gensler, and others. Despite bipartisan attempts in Congress to establish clear regulations, the Biden Administration has yet to provide definitive guidance on this matter.

— Jesse Powell (@jespow) June 28, 2024

The Kraken CEO highlighted that under President Joe Biden’s administration, there has been a permissive regulatory environment through enforcement alone. This lax approach, according to him, is negatively impacting America’s competitive edge as leading economic powers establish definitive regulations for digital assets.

I’m looking forward to teaming up with other community heads in support of the sole Presidential candidate advocating for cryptocurrency in the 2024 election. This will enable the US to maintain its position as a trailblazer in blockchain technology.

Jesse Powell

Kraken and the Securities and Exchange Commission (SEC) have a lengthy history of clashing over the murky regulatory landscape governing cryptocurrencies in the US. In February 2023, Kraken reached an agreement with the SEC to pay a $30 million penalty for providing customers with a staking service that the SEC considered unregistered securities.

In November 2023, despite a previous settlement, the SEC filed a lawsuit against Kraken’s parent companies, Payward and Payward Ventures. The SEC accused these entities of running an unregistered online trading platform, with Kraken functioning as an illegal securities exchange, broker, dealer, and clearing agency since 2018. The lawsuit claimed that Kraken had made hundreds of millions of dollars during this period.

The Securities and Exchange Commission (SEC) alleges that Kraken, the cryptocurrency exchange, might commingle client funds with its own assets, posing a risk for losses on both parts. The court case remains unresolved.

Jesse Powell joins the ranks of other cryptocurrency leaders, such as Tyler and Cameron Winklevoss, in supporting the Republican presidential candidate. The co-founders of Gemini exchange have each contributed $1 million worth of Bitcoin (BTC) to Trump’s campaign and announced their intention to cast their votes for him in November.

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2024-06-28 11:31