Ripple CTO Responds to Kraken Founder XRP Accusations

Ripple CTO Responds to Charges Against Kraken Founder Over XRP Negativity

1 August 2025 to 19: 01

Reading time: 2 minutes

The recent debate surrounding the IPO of Kraken The controversy has flared up again when Ripple CTO David Schwartz tweeted a thread that echoed old accusations. One user took the opportunity to accuse Kraken co-founder Jesse Powell of a long-standing negative attitude toward Ripple and XRP (Ripple's cryptocurrency). Schwartz, with his extensive knowledge of the situation, defended Powell. According to him, the Kraken founder's stance is much more nuanced than is often thought.

This has prompted a reexamination of Powell’s history with XRP, which is anything but straightforward. He has been outspoken for years about the legal ambiguities surrounding XRP, noting that its early ties to Ripple Labs (then OpenCoin) created complications for regulators. The latter perhaps makes his concerns more understandable for investors aware of the risks. Powell’s message is not one of hostility, but rather of caution, mixed with often-overlooked technical insights.

In a notable discussion, Powell argued that if XRP were classified as a security, exchanges like Kraken could be held liable even for those acting in good faith. He called this “asymmetric risk” and significantly complicates decision-making around the listing process.

When Kraken recently decided to suspend XRP trading for US customers, Powell emphasized that it was a business decision, not a personal rejection. He described the legal uncertainty surrounding XRP as “too risky from a business perspective,” a statement that underscores fears of apparent write-downs or ill-considered decisions.

Kraken's Prospects: An IPO on the Horizon

As the debate continues to unfold, Kraken is back in the spotlight as it prepares for a potential IPO. The exchange has reportedly raised $100 million in preparation for a listing, with a target valuation of over $15 billion. This is an ambitious undertaking, especially considering Coinbase's experiences after its turbulent IPO.

Kraken's investment round is expected to close by the end of the year, and if successful, it is likely to revive its previous IPO plans, which were halted after Coinbase's problems. With a daily trading volume of over $1,37 billion and more than 1.100 tradable pairs, Kraken remains one of the most active exchanges in the world. This indicates a strong user base and robust infrastructure, which are crucial for their intended growth.

In an ever-changing crypto landscape, where regulations and market expectations are constantly evolving, how Kraken and its leaders handle the legal challenges of cryptocurrencies is crucial. This will not only impact their IPO but also the broader perception of cryptocurrencies within the European market.

Frequently Asked Questions

How does XRP's legal status affect Kraken's decisions?
XRP’s legal status is crucial for Kraken, as potential classification as a security carries significant liabilities. This could impact both their business operations and their decision to trade XRP.

What does the upcoming IPO mean for Kraken and the European crypto market?
A successful IPO could position Kraken as a major player in the European landscape and give investors confidence in the sustainability of cryptocurrencies, even in a volatile climate.

Why is Powell's stance on XRP so important?
Powell's views on XRP are substantive and based on technical and legal considerations. His insights are valuable for investors seeking to understand the risks and opportunities within the crypto landscape.

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