According to Ripple CEO Brad Garlinghouse’s most recent interview, Tether (USDT) will be the next crypto cGarlinghouse for the U.S. government. The U.S. government may pursue market leaders like Tether in its efforts to enact stablecoin laws. But hours later, Paolo Ardoino, CTO of Tether, explained, claiming that Garlinghouse is inciting panic around USDT.
Attacking Tether Could Destroy Crypto
Garlinghouse revealed this insight during his visit on a recent episode of the World Class podcast presented by Chris Vasquez. He underlined that there could be a significant upheaval in the cryptocurrency market if the U.S. took action against the stablecoin issuer. The CEO of Ripple continued:
“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 is made in light of recent revelations about the use of USDT by terrorist organizations and sanctioned countries to get around U.S. financial sanctions. The U.S. Treasury Deputy Secretary, Adewale Adeyemo, testified before the Senate Banking Committee in April, highlighting RusRussia’sowing dependence on alternative payment mechanisms, such as TetTether’s, to circumvent economic sanctions. Banking giant Deutsche Bank has recently questioned TetTether’s activities and the stablecoin market’s strength.
Paolo Ardoini, CTO, Loses It
As everyone knows, Ripple is getting ready to introduce its own stablecoin, most likely in June. A few weeks before the launch, Garlinhouse made remarks critical of Tether. In considering Ripple’s CEO’s potential move into the stablecoin sector, it raises questions about his intentions amid fierce competition. Aiming to carve a niche, he faces Tether’s dominant 60% market share.
In response, Ardoino casts doubt on the credibility of the unnamed CEO’s statements, particularly amidst SEC investigations. Using “cui bono,” he suggests hidden motives.
Ardoino defends USDT, highlighting its global popularity and stability, especially in developing regions. He underscores its robust infrastructure, compliance measures, and liquidity reserves. Moreover, he provides comprehensive insights into Tether’s compliance standards.
An uniformed CEO, leading a company being investigated by the SEC, launching a competitive stablecoin (cui prodest), is being reported spreading fear about USDt.
Let me give you an update on Tether USDt ecosystem safety.
USDt is the most used stablecoin in the world, with…
— Paolo Ardoino 🍐 (@paoloardoino) May 13, 2024
