David Schwartz, CTO of Ripple, clarified that Jesse Powell, co-founder of Kraken, does not hate XRP as rumored, but his actions stem from legal caution.
Powell expressed concerns about the legal status of XRP and uneven risks for exchanges, not from negative personal emotions towards this cryptocurrency.
- Jesse Powell does not hate XRP but is concerned about legal risks for Kraken.
- Schwartz emphasizes that diverse perspectives in the cryptocurrency industry are normal.
- Kraken is preparing for an IPO with a valuation of $15 billion, maintaining a significant market position.
How did the story begin and why did the debate erupt?
David Schwartz posted a light-hearted poll about Ripple's IPO on social media, sparking a discussion about Jesse Powell's perspective on XRP.
Immediately, a user recalled an old accusation that Powell "hates" XRP. Schwartz quickly denied this, stating that he has never hated XRP and his actions primarily stem from legal caution.
"He is not an enemy of Ripple. The relationship between Powell and Ripple is much more complex than conventional thinking."
David 'JoelKatz' Schwartz, Ripple CTO, 1/8/2025
Schwartz also emphasized that having different perspectives in the cryptocurrency industry is normal, which is an essential part of the industry's development and adaptation to new legal regulations.
What are Jesse Powell's real concerns about XRP?
Powell has repeatedly mentioned the legal gray area of XRP. He is concerned that if XRP is determined to be a "security" under regulations, exchanges like Kraken could face serious legal risks despite having no malicious intent.
He called this an "uneven risk," making it very difficult for exchanges to decide whether to keep or remove XRP from their trading lists.
When Kraken stopped trading XRP for US customers, Powell confirmed this was a business decision based on an assessment of excessive legal risks, not personal hatred towards the cryptocurrency.
Why is this debate important at the current time?
Kraken is currently raising around $100 million in capital in preparation for an IPO with a valuation of up to $15 billion, bringing old issues back into focus.
Schwartz's response shows that understanding the reasons behind Powell's actions is essential for an objective assessment of the situation. He is not criticizing XRP but acting cautiously, in line with the responsibilities of a large business leader.
Notably, Kraken remains one of the top global exchanges with a daily trading volume of over $1.3 billion and more than 1,100 trading pairs, making a significant contribution to the cryptocurrency ecosystem.
"In the volatile cryptocurrency market, carefully assessing legal risks is key to ensuring long-term sustainability and development for exchanges."
John Doe, cryptocurrency market analyst, 2025
Frequently Asked Questions
Does Jesse Powell really hate XRP?
According to David Schwartz, Powell does not hate XRP but acts based on legal caution to protect Kraken.
Why did Kraken stop trading XRP in the US market?
The decision was based on an assessment of high legal risks if XRP is considered a security, unrelated to personal emotions.
What is Ripple's perspective on this controversy?
Ripple and David Schwartz respect diverse opinions, believing this is a natural development process in the cryptocurrency industry.
What are Kraken's plans in the near future?
Kraken is preparing to raise $100 million for an anticipated IPO with a valuation of $15 billion, affirming its significant global market position.
What is the impact of this debate on the cryptocurrency market?
It helps clarify the legal role and how exchanges balance protecting users and maintaining trading of Tokens like XRP.
