Ripple CTO Defends Kraken Co-Founder Amid XRP Criticism as $15B IPO Looms

Ripple CTO David Schwartz recently pushed back against claims that Kraken co-founder Jesse Powell has long disliked Ripple and XRP. The debate resurfaced after Schwartz posted a casual poll on a potential Ripple IPO, prompting renewed accusations from users about Powell’s alleged negative stance.

Schwartz clarified that Powell’s position has historically been more cautious than hostile. Powell has often highlighted the legal uncertainty surrounding XRP, citing its early association with Ripple Labs (formerly OpenCoin) as a regulatory gray area. He has argued that if XRP were classified as a security, exchanges like Kraken could face liability even when acting in good faith—a risk he described as “asymmetrical.”

This cautious approach influenced Kraken’s decision to suspend XRP trading for U.S. customers amid regulatory pressure. Powell stressed at the time that the move was purely a business decision driven by legal uncertainty, rather than personal bias against XRP.

The renewed discussion comes as Kraken revives its long-delayed IPO ambitions. The exchange is reportedly raising $100 million ahead of a potential public listing, targeting a valuation exceeding $15 billion. If successful, the round would reignite Kraken’s listing plans, previously shelved following Coinbase’s rocky market debut.

Kraken remains a major global cryptocurrency exchange, recording over $1.37 billion in daily trading volume and supporting more than 1,100 trading pairs. The company’s renewed IPO efforts highlight growing investor confidence despite ongoing regulatory challenges in the U.S. crypto sector.

With Ripple’s IPO rumors and Kraken’s public listing plans back in the spotlight, tensions over XRP’s legal status and exchange policies may continue shaping market sentiment.