Kraken founder Jesse Powell donates $1 million to Donald Trump

Jesse Powell, founder of Kraken cryptocurrency exchange, announced on X today that he has donated $1 million to former U.S. President Donald Trump’s campaign.

“I am excited to join other leaders from our community to unite behind the only pro-crypto major party candidate in the 2024 Presidential election so the United States can continue to remain a leader in blockchain technology,” Powell said in the X post. The post detailed that the $1 million donation consists mostly of ether.

The former Kraken leader stated that the Biden administration has allowed a “campaign of unchecked regulation by enforcement” that is weakening the U.S. competitiveness against other major economies in regulating crypto assets. Powell cited names such as Senator Elizabeth Warren and Securities and Exchange Commission Chair Gary Gensler as adversaries of the crypto industry.

Jesse Powell's tenure as CEO of Kraken, the cryptocurrency exchange he co-founded in 2011, was marked by several legal entanglements with the U.S. government. In 2022, the Department of Justice fined Kraken for violating sanctions by allowing users in Iran, Cuba, and Syria to trade on its platform. The exchange also faced a legal dispute with the IRS , where it refused to comply with a summons demanding transaction data. Powell stepped down as CEO in 2022 but continues to serve as chairman of the board. 

Trump vs. Biden

Trump has recently expressed strong support for the blockchain and crypto industry. Trump started to accept campaign donations in various cryptocurrencies last month, and made several speeches embracing digital assets and bitcoin mining. 

This earned the presumptive Republican candidate for the upcoming 2024 election support from prominent figures in the crypto field, such as Gemini founders Cameron and Tyler Winklevoss and Ark Invest CEO Cathie Wood. Wood said last week at a conference that she plans to vote for Trump , considering the future of the U.S. economy.

On the other hand, U.S. President Joe Biden has not provided a clear stance on cryptocurrencies since Trump’s public support for the sector. However, The Block reported last month that the Biden campaign was in talks with local crypto industry members for guidance on policy, and earlier this month that the Biden campaign was looking to accept crypto donations via Coinbase Commerce.

On Thursday night, Biden and Trump had their first presidential debate since 2020, hosted by CNN. While the topic of blockchain and cryptocurrency did not come up during the debate, it triggered an increase in calls for Biden to step down from running for reelection in 2024, The Guardian reported. Users on prediction market platform Polymarket bet 62% that Trump will win in the upcoming U.S. presidential election.

Updated for additional background information on Powell's tenure as CEO of Kraken.