Ripple CEO predicts US government‘s scrutiny on Tether, prompting rebuttal from Tether CTO.
Brad Garlinghouse, CEO of Ripple, stated in his most recent interview that Tether (USDT) would be the next target of the United States government in cryptocurrency.
Given the US government’s efforts to implement regulations on stablecoins, it may target market leaders such as Tether. Tether CTO Paolo Ardoino, however, provided an explanation hours later, claiming Garlinghouse was disseminating rumors regarding USDT.
Garlinghouse conveyed this insight during his recent appearance on a World Class podcast episode by Chris Vasquez.
The speaker emphasized the possibility that prospective US actions against the issuer of stablecoins could result in substantial upheaval within the cryptocurrency industry. The CEO of Ripple further stated:
“The US Government is going after Tether. That is clear to me. I view Tether as a very important part of the ecosystem and I don’t know how to predict the impact it would have on the rest of the ecosystem”.
This assertion emerges in the wake of recent revelations concerning the use of USDT by sanctioned nations and terrorist organizations to circumvent US financial restrictions.
Adewale Adeyemo, the Deputy Secretary of the United States Treasury, testified to the Senate Banking Committee in April, emphasizing the growing dependence of Russia on alternative payment mechanisms such as Tether’s USDT to circumvent economic sanctions.
Deutsche Bank, a financial behemoth, has recently questioned Tether’s operations and the stability of the stablecoin market.
Ripple is reportedly preparing to introduce its stablecoin within the following month of June. Garlinhouse’s criticisms of Tether were expressed only a few weeks before the cryptocurrency’s release.
This raises uncertainties regarding whether the Ripple CEO is attempting to establish a foothold in the fiercely competitive stablecoin market, where Tether holds an almost 60% market share.
Ardoino, in his criticism of Garlinhouse, expressed apprehensions regarding the veracity of statements attributed to an unidentified CEO, especially in light of the ongoing investigations being conducted by the US Securities and Exchange Commission (SEC) into the operations of their organization.
He hypothesized that the CEO’s remarks might be shaped by hidden interests, citing the Latin phrase “cui prodest,” which translates to “who benefits.”
Ardoino, in support of USDT, underscored its position as the preeminent stablecoin on a global scale, boasting a user population exceeding hundreds of millions, notably concentrated in developing nations and emergent markets.
The speaker emphasized the consistent achievement of USDt in preserving price stability, which is supported by solid liquidity reserves, trustworthy custodians, and stringent compliance protocols. Furthermore, he detailed all the most recent statistics and essential aspects about Tether’s worldwide adherence.
