Ripple CTO David Schwartz Claps Back at Caitlin Long’s Controversial ’XRP ICO’ Claim
Ripple's chief technology officer isn't mincing words. David Schwartz just fired back at Custodia Bank CEO Caitlin Long's explosive suggestion that XRP's 2013 launch constituted an ICO—throwing gasoline on crypto's most persistent regulatory debate.
The showdown pits two of crypto's sharpest legal minds against each other. Long—a Wall Street vet turned blockchain advocate—dropped the ICO bombshell during a recent regulatory panel. Schwartz countered with blockchain archaeology, tweeting archived transaction logs that show XRP's pre-mined supply predating the ICO boom by years.
This isn't just academic bickering. The SEC's lawsuit against Ripple hangs on whether XRP qualifies as a security—a classification that could vaporize liquidity faster than a DeFi exploit. Schwartz's receipts suggest XRP was always meant as a bridge currency, not an investment contract. But try telling that to regulators who still think 'blockchain' is a type of ski binding.
One thing's clear: in crypto's endless game of 'he said, she said,' the only winners are the lawyers billing by the hour. As the industry waits for regulatory clarity, perhaps we should all take a page from Schwartz's playbook—when in doubt, let the blockchain speak for itself.
XRPL validator rejects ‘ICO’ allegations
The validator, VET (@Vet_X0), strongly rejected Caitlin Long’s characterization of XRP as the result of an initial coin offering (ICO). He said she appeared to lack a clear understanding of the subject, yet spoke about it confidently.
Vet explained that Ripple did not raise funds through an ICO. Instead, when the XRP Ledger launched in 2012, the entire supply of 100 billion XRP tokens was placed in a genesis account. At that time, the tokens had no monetary value and no public sale or capital raise.
This counters Long’s claim that XRP’s origins are comparable to projects like Ethereum, which conducted a well-documented public ICO in 2014, raising funds in Bitcoin to distribute ETH to early backers.
Vet also had a beef with Long claiming not once, but twice, that Ripple essentially centralizes the XRP Ledger.
Vet said Long’s comments were either ignorance or technical illiteracy. He said that XRP Ledger is open-source and decentralized, and that anyone could run a validator or fork the code.
Currently, the XRPL hosts over 1,000 nodes and over 100 active validators, many of which are controlled by independent individuals, universities, businesses, and financial institutions, not Ripple. Ripple said it does not own these validators and can’t update the network unaided.
Ripple expands RLUSD to both Ethereum and XRPL
Caitlin Long is concerned that the choice made by Ripple to launch its RLUSD stablecoin on Ethereum contradicts its original vision of using the XRP Ledger as the backbone of global finance. She suggested switching to Ethereum might mean Ripple isn’t trusting in its infrastructure.
XRPL validator Vet replied that RLUSD was to be issued on Ethereum and the XRP Ledger as a deliberate multi-chain strategy. He stressed that this isn’t a move away from XRPL but rather a pragmatic attempt to enhance liquidity and target a more diverse audience across other blockchain ecosystems.
According to Vet, Ripple Payments and RLUSD continue to operate natively on the XRP Ledger, and Ethereum’s involvement merely complements—not replaces—the network’s capabilities.
Vet also took the opportunity to spotlight XRPL’s long-standing technical leadership. He noted that the XRP Ledger was the first blockchain to embed a decentralized exchange (DEX) directly into its protocol. It also pioneered native tokenization, enabling users to issue custom assets without relying on smart contracts.
Development on the XRP Ledger, Vet stressed, has never stagnated. Its amendment system continually adds new features based on community consensus. He described the ecosystem as vibrant, supported by a growing developer base, strong liquidity, and deeper connections to real-world finance, which are further strengthened with the rollout of RLUSD.
Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.
