This week, Ripple CTO David Schwartz launched a casual IPO poll on social media. However, the discussion quickly shifted when a user reignited claims that Kraken cofounder Jesse Powell has consistently expressed negativity toward Ripple and XRP. Schwartz promptly pushed back, insisting that Powell’s views are more nuanced than they appear.
Powell’s History with XRP Under Scrutiny
Following the comment, community members revisited Powell’s history with XRP. They noted that his past remarks focused less on hostility and more on regulatory caution. For years, Powell highlighted the legal ambiguity surrounding XRP, stemming from its early association with Ripple Labs, formerly OpenCoin. This link, he argued, could complicate regulatory classifications and create potential compliance risks for exchanges.
Powell repeatedly emphasised that the uncertainty carried what he called “asymmetrical risk.” He warned that if regulators ever classified XRP as a security, exchanges like Kraken could face significant liability even if they had acted in good faith. This concern influenced Kraken’s approach to listing and trading the token.
Related article: Ripple Expands DeFi Presence with RLUSD Hitting $550M Market Cap
Later, Kraken suspended XRP trading for U.S. customers. At that time, Powell clarified that the decision was strictly a business move. He labelled the legal environment “too risky from a business perspective,” distancing himself from any suggestion of personal bias against XRP.
IPO Momentum Reignites Debate
The renewed debate emerges as Kraken moves closer to an initial public offering. Reports indicate that the exchange is raising $100 million to support a public listing. With this funding round, Kraken targets a valuation exceeding $15 billion and expects to finalize the raise by year-end. This development could revive IPO plans previously halted following Coinbase’s rocky market debut.
Related article: Ripple’s CLO Sees White House Report as Catalyst for Stablecoin and XRP Growth
Despite past controversies, Kraken remains a major player in the crypto market. The exchange currently records over $1.37 billion in daily trading volume and offers more than 1,100 trading pairs globally, reinforcing its position as a leading digital asset platform.
