Ripple CEO: The US government is putting Tether "in its sights"

Brad Garlinghouse, CEO of Ripple, has expressed concern about the US government paying special attention to Tether. He said that any regulatory measures against the stablecoin could have a major impact on the cryptocurrency market.

Participating in the podcast "World Class", Mr. Brad Garlinghouse, CEO of Ripple, shared his views on the cryptocurrency industry. He specifically highlighted Tether (USDT), the world's largest stablecoin issuer by capitalization, and expressed concern that if the US government takes measures against this project, this could affect seriously affect the entire cryptocurrency market.

New Episode with Brad Garlinghouse @bgarlinghouse, CEO of @Ripple is live!

We Cover:

- Brad's wild journey scaling Ripple

- Fighting SEC Lawsuits, the importance of taking risk & being courageous

- Invaluable CEO lessons on building culture, hiring A+ players & enduring teams

-… pic.twitter.com/VQqrH4CfaX— Chris Vasquez (@imchrisvasquez)

May 10, 2024

Brad Garlinghouse is convinced that a black swan event is inevitable, but how it will happen remains a mystery. He also added that the US government placing Tether in its sights could be the main factor leading to this event.

🚨*Ripple CEO Brad Garlinghouse Warns About A Blackswan Coming*🚨

He Discusses How The US Government Is Coming After Tether As Well

My Last Few Videos Have Discussed How It’s Obvious That With The Stablecoin Bill Coming Tether Is In The Line Of Fire

When Ripple & Brad Warn… pic.twitter.com/YAVQqUg4TI— The Bearable Bull (@thebearablebull) May 10, 2024

Ripple CEO said:

“I noticed that the US government is making moves targeting Tether. I see Tether as an integral part of the cryptocurrency ecosystem and I cannot foresee the effects it could have on the entire market."

This statement was made amid concerns that Tether is being used by terrorist organizations and embargoed countries like Russia to circumvent US economic sanctions.

In a testimony to the US Senate Banking Committee in April, Adewale Adeyemo, US Deputy Secretary of the Treasury, emphasized that: "We recognize that Russia is gradually switching to using other payment methods, including stablecoin Tether, aimed at circumventing our sanctions and maintaining funding for their military campaign.”

Besides, according to a United Nations report, USDT on the TRON blockchain has emerged as a popular means for money laundering activities, especially in illegal online gambling platforms. .

Faced with the above allegations, Tether affirmed that it always complies and cooperates with law enforcement agencies to fight illegal financial activities.

Tether has implemented anti-money laundering and "circumvention" measures, including freezing Venezuela-related wallet addresses using USDT to avoid sanctions, and most recently, the company also cooperated with Chainalysis to develop a system to help identify illegal USDT transactions.

Tether's USDT increasingly affirms its position as the leading stablecoin in the market in terms of capitalization, with a total circulating supply reaching about 110 billion USD. In particular, the company recorded a record net profit, amounting to 4.52 billion USD in the first quarter of 2024.

Previously, Ripple - a blockchain technology company focused on creating cross-border payment solutions was also entangled in SEC lawsuits accusing Ripple of illegally selling securities in the form of XRP, which has dragged long since 2020. Although, according to the ruling XRP cannot be considered a security

However, the SEC still refused to give up and prepared for the final stage of the lawsuit by petitioning the court to impose a $2 billion fine on Ripple and Ripple announced that it would continue to fight against the fine's request. SEC and now the battle is not over yet.

Despite Ripple and the SEC's high-profile lawsuit, the law is increasingly targeting Tether. RIpple still announced the issuance of its own stablecoin on two blockchain networks, Ethereum and Ripple.

Despite being in a legal battle with the SEC and laws that are increasingly tightening management of Tether, Ripple still announced plans to launch its own stablecoin on the Ethereum and Ripple blockchains.