Kraken Gears Up for Election Battle Despite Regulatory Victories as US Economy Hits Rocky Patch

Cryptocurrency exchange Kraken prepares for political turbulence ahead of the 2024 elections—even as it notches regulatory wins. Meanwhile, the US economy shows concerning cracks that could reshape digital asset markets.

Regulatory Chess Match

Kraken's legal team builds election-season defenses while celebrating recent courtroom victories. The exchange navigates shifting political winds that could dramatically alter crypto's regulatory landscape post-election.

Economic Warning Signs

Traditional finance indicators flash amber as inflation stubbornly persists. Bond markets signal uncertainty while equity investors eye crypto's potential as a hedge—proving once again that Wall Street's crystal ball needs recalibration.

Industry Positioning

Major players across digital assets brace for potential policy shifts. Exchange volumes show increased institutional participation despite macroeconomic headwinds—suggesting smart money sees long-term value beyond short-term noise.

As regulators play whack-a-mole with emerging technologies, Kraken's election preparations highlight crypto's inevitable collision with politics. Because nothing says 'financial revolution' like waiting for seventy-year-old politicians to decide your fate.

Crypto PACs build $140 million midterm war chest

Recall last October when the crypto industry spent $160 million on lobbying efforts.

The money helped. Since Inauguration Day, the crypto industry has enjoyed loose regulations and at least two White House-hosted parties. There was the March 2025 Digital Asset Summit, featuring major crypto firms to discuss a U.S. Strategic Bitcoin Reserve, as well as a May 2025 event for 220 top holders of the TRUMP meme coin.

Both events drew attention to the TRUMP administration’s engagement with crypto, while also raising ethical concerns over potential conflicts of interest.

However, with the 2026 midterm elections approaching, the industry hopes to cement its gains by doubling down on political spending.

So far, crypto PACs have amassed $140 million in contributions from key industry players. These funds will go to candidates who support a pro-crypto agenda. In many cases, these candidates lean Republican, with Trump himself supporting the agenda.

It’s worth noting that the most significant piece of pro-crypto legislation, the GENIUS Act, was a bipartisan effort. Senator Bill Hagerty introduced the bill, which establishes a regulatory framework for payment stablecoins in the U.S. It passed the Senate 68–30 and the House 308–122, with support from both parties, and was signed into law by Trump on July 18.

Still, Kraken wants more.

“The fight for crypto in the United States is far from over,” Sethi said.

Kraken’s donations come as Trump’s most recent approval rating among Americans falls to just 41%.

Approximately 54% of those polled believe the economy is headed in the wrong direction, up from previous months, according to a Reuters/Ipsos poll.

Since January, the cryptocurrency industry has experienced significant growth, with the global market capitalization increasing from approximately $2.76 trillion in April to over $4 trillion by September.

That’s a spike of around 45% in just eight months.