Ripple CTO Defends XRP as Kraken Eyes $15B IPO Amid Powell Controversy

Ripple CTO rejects claims of Kraken founder’s XRP hostility.
Kraken eyes $15B IPO as XRP debate gains new attention.
Jesse Powell’s cautious XRP stance resurfaces amid IPO plans.

Ripple’s Chief Technology Officer, David Schwartz, has publicly defended Kraken co-founder Jesse Powell against renewed claims of hostility toward XRP. The defense arose following a casual IPO poll Schwartz posted, which quickly evolved into a debate regarding Powell’s long-held stance on Ripple’s token.

Another user alleged a negative history between Powell and XRP, prompting Schwartz to clarify that Powell's position has been one of caution, not criticism. He characterized Powell’s approach as technically grounded and leaning towards legal risk assessment, rather than personal speculation.

 Is he really a Ripple hater? My recollection is that his relationship to Ripple is more mixed.
 — David 'JoelKatz' Schwartz (@JoelKatz) August 1, 2025

Powell has previously expressed concern regarding the regulatory ambiguity surrounding XRP's initial close association with Ripple Labs (formerly OpenCoin). He highlighted the potential risks if XRP were to be classified as a security, noting that exchanges could face legal consequences, regardless of their intent.

Powell described this situation as an asymmetrical risk, where platforms listing XRP were exposed to potential regulatory actions. Consequently, Kraken suspended XRP trading for U.S. users, a strategic decision Powell attributed to legal uncertainties, rather than an attack on the token itself.

Kraken Pushes Ahead With $15 Billion IPO Amid Renewed XRP Discourse

As Kraken proceeds with a pre-IPO funding round aiming to raise $100 million, Powell’s past statements are being re-examined. The exchange is reportedly targeting a public valuation exceeding $15 billion, a move that reverses earlier IPO plans that were shelved due to market volatility following Coinbase's launch.

The funding round, expected to conclude by year's end, signals Kraken's firm commitment to entering public markets. The renewed focus on Powell's past comments has broadened into a wider discussion of Kraken's overall regulatory posture.

Kraken currently ranks among the leading crypto exchanges, facilitating over $1 billion in daily trading and offering access to more than 1,100 trading pairs, enhancing its competitive edge in the market.

As IPO discussions progress, the regulatory narrative surrounding Ripple and XRP is once again intertwined with Kraken and its reputation. While Powell's comments were previously often interpreted in isolation, current scrutiny focuses on investor confidence and regulatory compliance.

With Schwartz clarifying Powell’s perspective and Kraken advancing its IPO plans, the intersection of XRP and regulatory prudence remains a key point of discussion. The coming months will reveal the extent to which this renewed controversy influences Kraken's journey into the public market.

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