In a recent podcast, Ripple’s CEO Brad Garlinghouse suggested that Tether, the leading Stablecoin issuer, could be the next target of the US government. Tether’s CEO, Paolo Ardoino, dismissed Garlinghouse’s claims, accusing him of fearmongering.
Assessment of Tether’s Position
During a podcast with Quantum’s founder, Chris Vasquez, Garlinghouse shared insights on the crypto industry’s resilience in the face of challenges. He referenced the regulatory woes of companies like FTX and Binance to support his perspective.
Garlinghouse highlighted the unexpected downfall of influential figures in the industry, emphasizing the unpredictable nature of events like the imprisonment of SBF and the legal issues faced by CZ. Despite these setbacks, he commended the industry’s resilience and expressed optimism for the future.
Garlinghouse predicted the possibility of another unforeseen event, indicating a potential US government crackdown on Tether. He emphasized Tether’s significance in the crypto ecosystem, suggesting that such regulatory actions could have widespread implications.
Response from Tether’s CEO
In response to Garlinghouse’s remarks, Paolo Ardoino criticized the Ripple CEO, labeling him as misinformed and accused him of spreading fear regarding Tether (USDT). Ardoino viewed Garlinghouse’s comments as an attack from a competitor facing SEC investigations.
Ardoino reassured the community about Tether’s safety, highlighting its status as the most widely used stablecoin globally and its robust compliance measures. He underscored Tether’s collaboration with law enforcement agencies and its efforts to combat illicit activities, aiming to dispel negative perceptions.
Addressing Garlinghouse’s concerns, Ardoino defended Tether’s transparency and compliance efforts, suggesting that sensationalized narratives could hinder the adoption of stablecoins and cryptocurrencies.
Garlinghouse clarified his stance, indicating that his remarks were not an attack on Tether but a reflection of the US government’s intentions to regulate USD-backed stablecoin issuers. He pointed out Tether’s prominence in the sector as a potential target for increased regulatory scrutiny.
