Ripple CEO Suggests US Authorities Targeting Tether

The US government is closely monitoring Tether’s activities, with potential regulatory measures that could significantly impact the industry, according to Ripple CEO Brad Garlinghouse.

“The US government is going to pursue Tether. This is obvious to me. I view USDT as a very important part of the ecosystem and do not know what impact this will have on the rest of it,” the executive noted.

In response to Garlinghouse’s statement, Tether emphasized its efforts to comply with regulations.

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

“Tether works directly with law enforcement, while other ‘stablecoins’, despite claiming ‘high compliance’, request court orders, allowing hackers, fraudsters, and criminals to move funds for a long time,” wrote the company’s CEO Paolo Ardoino.

He called the Ripple chief’s remarks “hypocritical,” pointing out that his company is under investigation by the SEC and is attempting to launch a competing stablecoin.

In May, Deutsche Bank expressed concern over the dominant position of the leading stablecoin. They questioned the adequacy of Tether’s backing.

Previously, JPMorgan stated that the growing market share of Tether poses risks to the segment and the crypto ecosystem as a whole.

Experts highlighted the US Congress’s consideration of the Stablecoin Transparency Act and the development of regulatory frameworks for stablecoins in other jurisdictions. Notably, in June, partial implementation of MiCA is expected in the EU.

Earlier, Tether expressed disappointment with the UN’s assessment of USDT’s use in illegal activities and the overlooking of the asset’s role in developing economies.

On April 28, US Senators Elizabeth Warren and Roger Marshall sent a letter to the Treasury, Department of Defense, and the White House, expressing concern over the use of cryptocurrencies, including Tether, to evade sanctions.

Later, the issuer of USDT and Chainalysis entered into a partnership to create a system for tracking secondary market activity.

Back in December 2023, the company confirmed its commitment to cooperating with authorities and law enforcement worldwide.

In the same month, the firm began freezing wallets linked to the SDN of the US Treasury’s Office of Foreign Assets Control. The company also highlighted its assistance to agencies like the Department of Justice, Secret Service, and FBI.