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Jesse Powell, the founder and former CEO of Kraken, has donated $1 million in Ethereum (ETH) to former President Donald Trump. With presidential elections on the horizon, Powell’s decision comes as a response to the regulatory stance of the Biden administration.
In a Jun. 28 post on X, Powell expressed his frustration with the U.S. government’s hawkish attitude towards the crypto industry. He singled out Dem. Elizabeth Warren and SEC Chair Gary Gensler for their aggressive regulatory approaches.
Powell criticized President Joe Biden’s administration, stating it “allowed a campaign of unchecked regulation by enforcement.” He believes this strategy is “diminishing U.S. competitiveness as other major economies around the world advance clear rules to regulate digital assets.”
Powell stated, “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.”
Kraken and the SEC have a history of conflict due to the ambiguous regulatory framework for crypto in the U.S. In February 2023, Kraken settled with the SEC for $30 million over a staking feature the SEC deemed unregistered securities.
Despite this settlement, the SEC sued Kraken’s parent companies, Payward and Payward Ventures, in November 2023. The lawsuit alleges Kraken operated illegally since 2018 as a securities exchange, broker, dealer, and clearing agency, earning hundreds of millions of dollars.
The SEC also claims Kraken could mix clients’ funds with its assets, risking losses on both sides. This court case is still pending.
Powell is not alone in his support for Trump. Tyler and Cameron Winklevoss, founders of the Gemini crypto exchange, have each donated $1 million in Bitcoin (BTC) to Donald Trump and pledged to vote for him in November.