A recent social media discussion sparked debate about the relationship between Kraken’s cofounder Jesse Powell and XRP, prompting Ripple CTO David Schwartz to weigh in with his perspective. When a user suggested that Powell harbors negative feelings toward XRP during a casual IPO poll, Schwartz pushed back, arguing that Powell’s stance has been more complex than simple hatred.
Ripple CTO David Schwartz says stablecoin issuers do not threaten Ripple and infact benefit the ecosystem:"You still need liquidity.""The dollar aggregates demand for smaller currencies and we see $XRP playing that role." pic.twitter.com/3V8ZGMd1kR
— ALLINCRYPTO (@RealAllinCrypto) June 16, 2025
Powell’s Cautious Approach to XRP
The exchange led to a deeper examination of Powell’s historical comments about XRP, which reveal a more nuanced position rooted in regulatory concerns rather than personal animosity. Powell has consistently expressed worries about the legal uncertainties surrounding XRP, particularly given its early connections to Ripple Labs, formerly known as OpenCoin.
His concerns have centered on practical business considerations rather than ideological opposition. Powell has argued that if XRP were classified as a security, exchanges like Kraken could face liability issues even when operating in good faith. He characterized this situation as creating “asymmetrical risk” that complicates listing decisions for exchanges.
When Kraken made the decision to suspend XRP trading for U.S. customers, Powell framed it explicitly as a business decision driven by legal uncertainty. He described the regulatory ambiguity as “too risky from a business perspective,” emphasizing the practical rather than personal nature of the choice.
Kraken’s IPO Ambitions Heat Up
The discussion comes at a significant time for Kraken, as the exchange is actively pursuing its public listing goals. The company is currently working to raise $100 million in preparation for a potential IPO that could value the exchange at more than $15 billion.
This funding round is expected to wrap up before the year ends and represents a revival of IPO plans that were previously put on hold following Coinbase’s challenging public debut. Kraken continues to maintain its position as a major player in the cryptocurrency exchange space, processing over $1.37 billion in daily trading volume across more than 1,100 trading pairs.
Potential Market Implications
The clarification from Ripple’s CTO may help ease concerns about institutional sentiment toward XRP among major exchanges. However, the regulatory uncertainties that Powell previously highlighted remain unresolved, suggesting limited immediate impact on XRP’s market position.
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