- Powell cited regulatory risks as the primary concern surrounding XRP.
- Kraken suspended XRP trading in the U.S. because of legal pressure.
- Kraken processes $1.3 billion in daily trading across 1,100 pairs.
Ripple’s Chief Technology Officer, David Schwartz, recently addressed renewed speculation about Jesse Powell, the co-founder of crypto exchange Kraken, as the company prepares for a potential initial public offering (IPO).
The discussion was reignited by an informal poll that Schwartz shared on X about Ripple’s possible IPO, which unexpectedly prompted claims that Powell “has always hated XRP.”
Schwartz quickly intervened to dismiss that suggestion, offering context that Powell’s concerns were rooted in regulatory risk rather than personal bias.
The clarification arrives as Kraken pursues a valuation near $15 billion ahead of its planned public offering.
XRP concerns linked to regulatory uncertainty
The XRP debate resurfaced after a user on X revisited claims about Powell’s alleged dislike of the token.
Schwartz responded that Powell did not hate XRP; rather, he treated it cautiously because of regulatory gray areas.
Powell repeatedly expressed concern that if regulators ultimately classified XRP as a “security,” exchanges such as Kraken could face consequences even while complying with then-current laws.
That regulatory uncertainty, Powell argued, created an uneven risk that forced exchanges to balance potential compliance costs against trading opportunities.
His caution ultimately led Kraken to suspend XRP trading for U.S. customers — a decision Powell characterized as a business judgment rather than a personal stance.
Kraken’s decision to halt U.S. XRP trading
Kraken’s suspension of XRP trading for U.S. users was a direct response to regulatory pressure. Powell emphasized that the exchange acted to reduce exposure to possible enforcement actions.
The move mirrored similar steps by other major exchanges that chose to delist or restrict XRP amid legal concerns about its status.
By taking this action, Kraken sought to shield itself from legal risk that could arise if regulators determined XRP to be a security.
The suspension was intended to preserve the company’s long-term stability rather than to signal hostility toward the token.
Debate resurfaces as Kraken eyes IPO
The timing of the renewed discussion coincides with Kraken’s preparations for a potential public listing, reportedly aiming to raise about $100 million.
The fundraising would target a valuation around $15 billion, positioning Kraken among the largest publicly traded crypto exchanges.
With the company back in the spotlight, past controversies such as the XRP suspension have returned to public attention, fueling online speculation.
Schwartz’s clarification on X sought to distinguish personal opinion from regulatory prudence, stressing that Powell’s decisions reflected broader industry challenges rather than an animus toward XRP.
Kraken maintains a strong global trading presence
Despite the earlier U.S. suspension of XRP, Kraken remains one of the world’s most active exchanges. The platform reports more than $1.3 billion in daily trading volume and supports over 1,100 trading pairs.
Kraken’s prominent market position underscores its influence as it prepares for a public debut, with regulatory compliance remaining a central element of its growth strategy.