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29 May 2024
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Breaking: Tether CTO Slams Ripple Chief Garlinghouse on USDT Remarks

In his latest interview, Ripple CEO Brad Garlinghouse stated that the U.S. government’s next target in the crypto space would be Tether (USDT). As the U.S. government has been working to bring stablecoin regulations, it could potentially go after dominant players like Tether. However, hours later, Tether CTO Paolo Ardoino came with an explanation stating that Garlinghouse is spreading fears about USDT.

Targeting Tether Can Disrupt Crypto

Garlinghouse shared this insight during his appearance on a recent episode of the World Class podcast hosted by Chris Vasquez. He emphasized that potential actions by the US against the stablecoin issuer could potentially cause significant disruption within the cryptocurrency space. The Ripple CEO added:

“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 claim arises amidst recent discoveries regarding the utilization of USDT by terrorist groups and sanctioned nations to circumvent US financial limitations. In April, Adewale Adeyemo, the US Treasury Deputy Secretary, testified before the Senate Banking Committee, underscoring Russia’s increasing reliance on alternative payment methods like Tether’s USDT to evade economic sanctions. Recently, banking giant Deutsche Bank has also questioned Tether’s operations while questioning the strength of the stablecoin market.

CTO Paolo Ardoini Lashes Out

As we know, Ripple is gearing up to launch its own stablecoin probably by the next month of June. Garlinhouse’s comments against Tether have come just a few weeks ahead of the launch. This raises doubts whether the Ripple chief is trying to make space for itself in the highly competitive stablecoin space, with Tether dominating nearly 60% of the market share.

Lashing out at Garlinhouse, Ardoino raised concerns about the credibility of statements made by an unnamed CEO, particularly considering ongoing investigations by the U.S. Securities and Exchange Commission (SEC) into their company’s practices. He suggested that the CEO’s comments may be influenced by ulterior motives, invoking the Latin phrase “cui prodest,” which translates to “who benefits.”

In defense of USDT, Ardoino emphasized its status as the most widely used stablecoin globally, with a user base spanning hundreds of millions, particularly in emerging markets and developing countries. He highlighted USDt’s track record of maintaining price stability, backed by robust liquidity reserves, reputable custodians, and rigorous compliance measures. He also mentioned all the updated statistics and key points regarding Tether’s global compliance.

The post Breaking: Tether CTO Slams Ripple Chief Garlinghouse on USDT Remarks appeared first on CoinGape.

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