XRP News Today: Ripple CTO Challenges 'XRP ICO' Claims Amid Legal Dispute

Ripple’s Chief Technology Officer, David Schwartz, has publicly challenged comments made by Caitlin Long, CEO of Custodia Bank, who recently labeled the XRP token as the product of an initial coin offering (ICO) and questioned the company’s technological direction. Long, who previously served as Ripple’s Chief Legal Officer and Chief Compliance Officer, has become a vocal critic of the firm, asserting that Ripple no longer aligns with its original mission of replacing traditional banking systems such as SWIFT. In a recent podcast, she suggested that Ripple’s past resembles an ICO and criticized the decision to launch its stablecoin, RLUSD, on Ethereum rather than solely on the XRP Ledger [1].

Schwartz responded on X, dismissing the allegations as misleading and offering to engage directly with Long to clarify the facts about Ripple, XRP, and its newly launched stablecoin. He also directed attention to a detailed analysis by XRP Ledger validator @Vet_X0, who refuted Long’s claims and explained that XRP was never issued through an ICO. According to the validator, the 100 billion XRP tokens were created at the launch of the XRP Ledger in 2012, with no public sale or capital raise. This contrasts sharply with Ethereum, which conducted a well-documented ICO in 2014 [1].

@Vet_X0 also challenged Long’s repeated claims that Ripple centralizes the XRP Ledger. He argued that the network is open-source, decentralized, and operated by over 1,000 nodes and 100 active validators, many of which are controlled by independent entities outside Ripple. The validator emphasized that Ripple does not own these validators and cannot unilaterally update the network. This highlights the project’s decentralized governance model, which has been a key point of contention in Ripple’s ongoing legal disputes with the U.S. Securities and Exchange Commission (SEC) [1].

Long has also expressed concern that Ripple’s decision to launch RLUSD on both Ethereum and the XRP Ledger signals a lack of confidence in its own infrastructure. @Vet_X0 countered that the multi-chain strategy was a deliberate move to enhance liquidity and expand the stablecoin’s reach across different blockchain ecosystems. He clarified that RLUSD remains a native offering on the XRP Ledger, with Ethereum integration serving as a complement rather than a replacement [1].

The debate over XRP’s classification as a security remains central to the SEC’s case, which began in 2020. Ripple has consistently maintained that XRP is a utility token, designed to facilitate fast, low-cost cross-border payments rather than function as an investment asset. Analysts suggest that Schwartz’s public response is part of a broader effort to shape the narrative around Ripple’s legal and operational practices, reinforcing a compliance-focused message amid heightened regulatory scrutiny [1].

Schwartz’s intervention underscores the company’s ongoing efforts to defend its position both in court and in public discourse. By addressing specific criticisms and directing users to factual resources, Ripple seeks to clarify misunderstandings and differentiate itself from speculative projects often associated with ICOs [1].

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[1] Ripple CTO Schwartz sets record straight on Caitlin Long’s ‘XRP ICO’ claim (https://www.mitrade.com/insights/news/live-news/article-3-1018418-20250807)