Ripple CTO Debunks Kraken Founder’s XRP Criticism Amid IPO
Ripple CTO David Schwartz clarified that Kraken co-founder Jesse Powell’s caution on XRP was driven by regulatory uncertainty, not personal bias. Powell cited XRP’s early ties to Ripple Labs and warned of ‘asymmetrical risk’ if U.S. regulators classify XRP as a security. This concern led Kraken to suspend XRP trading for U.S. customers to avoid enforcement actions.
The debate began after Schwartz’s informal poll on a potential Ripple IPO, which aims to raise $100 million at a $15 billion valuation. Crypto traders should monitor ongoing legal developments around XRP, as regulatory clarity could enhance liquidity and price stability. Conversely, lingering ambiguity may trigger short-term volatility and impact exchange listings.
Neutral
This clarification by Ripple CTO and the IPO details present no immediate bullish or bearish catalyst for XRP’s price. In the short term, traders may see neutral to slightly increased volatility as the market digests XRP’s regulatory debate. In the long term, resolution of XRP’s regulatory status could be a significant catalyst; however, until then, price movement will likely remain range-bound. Kraken’s decision to suspend XRP trading in the U.S. underscores ongoing compliance risks but has been largely priced in.