A casual IPO poll from Ripple CTO David Schwartz sparked renewed discussion this week when one user brought up familiar accusations that Kraken’s cofounder Jesse Powell harbors negative feelings toward Ripple and XRP. Schwartz quickly pushed back against these claims, suggesting that Powell’s actual stance has always been more complex than simple hatred.
The exchange led to a deeper examination of Powell’s history with XRP, which reveals a relationship that’s anything but black and white. Powell has consistently voiced concerns about the legal uncertainty surrounding XRP over the years, frequently highlighting how its early connections to Ripple Labs (formerly OpenCoin) might pose regulatory challenges.
🚨 BREAKING: Ripple CTO David Schwartz says the quiet part out loud:
Stablecoins don’t kill XRP. They rely on it.
💥 XRP = Infrastructure
💸 RLUSD, USDC, USDT ? Need $XRP for liquidity
🏦 Gov’t CBDCs? XRP bridges them
🌍 Tokenized assets? XRPL settles them
We’ll still need… pic.twitter.com/9KjNYgqqw0— Xaif Crypto🇮🇳|🇺🇸 (@Xaif_Crypto) June 19, 2025
Powell’s Cautious Approach to XRP
Rather than expressing outright hostility, Powell’s comments have typically reflected careful consideration mixed with technical understanding. He once argued that exchanges like Kraken could face liability if XRP were classified as a security, even when operating in good faith. Powell characterized this situation as creating “asymmetrical risk” that complicated listing decisions for exchanges.
When Kraken eventually suspended XRP trading for its U.S. customers, Powell emphasized that the move represented a calculated business choice rather than personal animosity. He described the ongoing legal uncertainty as “too risky from a business perspective,” underscoring the practical concerns driving the decision.
Kraken’s IPO Ambitions
This conversation gains additional relevance as Kraken moves forward with renewed IPO plans. The exchange is currently working to secure $100 million in funding ahead of a potential public offering, targeting a valuation exceeding $15 billion. Company officials expect to complete this funding round before year-end, which would restart IPO preparations that were previously put on hold following Coinbase’s challenging market debut.
Kraken continues to operate as one of the leading global exchanges, processing more than $1.37 billion in daily trading volume across over 1,100 trading pairs.
Potential Industry Implications
The clarification around Powell’s actual XRP stance may help dispel some misconceptions within the crypto community, though it’s unlikely to significantly impact short-term market dynamics. Kraken’s upcoming IPO preparations could draw more attention to exchange-token relationships and regulatory positioning strategies.
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