- Powell flagged regulatory risks as main concern for XRP.
- Kraken suspended XRP trading in the US due to legal pressure.
- Kraken handles $1.3 billion in daily trading across 1,100 pairs.
Ripple’s Chief Technology Officer, David Schwartz, has weighed in on renewed speculation surrounding Jesse Powell, the co-founder of crypto exchange Kraken, as the firm prepares for an initial public offering (IPO).
The conversation was reignited by a casual poll Schwartz shared on X regarding Ripple’s potential IPO, which unexpectedly led to claims that Powell had “always hated XRP.”
Schwartz quickly intervened, dismissing the suggestion and providing context around Powell’s concerns, which he said were rooted in regulatory risk rather than personal bias.
The clarification arrives at a time when Kraken is aiming for a $15 billion valuation in its upcoming IPO.
XRP concerns linked to regulatory uncertainty
The XRP controversy resurfaced after one user on X revisited claims about Powell’s alleged dislike of the token.
Schwartz responded by saying that Powell did not hate XRP, but rather approached it with caution due to its regulatory grey area.
Powell had repeatedly raised concerns that if regulators eventually categorised XRP as a “security,” exchanges such as Kraken could face consequences despite having complied with existing laws at the time.
This regulatory uncertainty, Powell argued, created an “uneven risk” that forced exchanges to weigh potential compliance costs against trading opportunities.
His caution culminated in Kraken’s decision to suspend XRP trading for US customers, which Powell described as a business move rather than a personal stance.
Kraken’s decision to halt XRP trading in the US
Kraken’s suspension of XRP trading for US users was a direct result of regulatory pressure. Powell emphasised that the exchange acted to reduce exposure to potential enforcement actions.
The move aligned with similar actions taken by other major exchanges, which chose to delist or restrict XRP in response to concerns about its legal status.
By taking this step, Kraken aimed to protect itself from legal risks that could arise if regulators determined XRP to be a security.
The decision was framed as one made to safeguard the company’s long-term stability rather than an expression of hostility toward the token.
Debate resurfaces as Kraken targets IPO
The timing of the renewed discussion coincides with Kraken’s preparation for a possible IPO, during which it is reportedly seeking to raise $100 million.
The fundraising is aimed at securing a valuation of around $15 billion, positioning Kraken among the largest publicly listed crypto exchanges.
As the company returns to the spotlight, past controversies such as the XRP suspension have re-emerged, with online speculation drawing renewed attention.
Schwartz’s clarification on X sought to separate personal opinion from regulatory caution, stressing that Powell’s decisions were aligned with broader industry challenges rather than rooted in dislike of XRP.
Kraken maintains strong position in global trading
Despite the past suspension of XRP trading in the US, Kraken continues to be one of the most active exchanges worldwide. It reports over $1.3 billion in daily trading volume and offers more than 1,100 trading pairs.
Its prominence in the sector underscores its influence as it prepares for public listing, with regulatory compliance remaining a central theme in its growth strategy.
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