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Ripple CEO Brad Garlinghouse Warns of US Government Crackdown on Tether

source-logo  cryptoknowmics.com 13 May 2024 07:30, UTC

Ripple CEO Brad Garlinghouse has voiced concerns about the US government's apparent pursuit of Tether, the issuer of the popular USDT stablecoin. Expressing uncertainty about the potential repercussions, Garlinghouse emphasized Tether's significance within the broader cryptocurrency landscape.

Regulatory Scrutiny Intensifies

[embed]https://twitter.com/WuBlockchain/status/1789819680065999229[/embed] Garlinghouse's remarks come amid heightened regulatory scrutiny in the digital asset sector, with recent events including the arrest of Binance founder Changpeng Zhao and ongoing technological challenges faced by Bitcoin. Recent revelations regarding Tether's alleged use by terrorist organizations and individuals in US-sanctioned countries have attracted the attention of US authorities. In April, US Treasury Deputy Secretary Adewale Adeyemo highlighted concerns about Russia's utilization of USDT and alternative payment methods to circumvent sanctions during testimony before the Senate Banking Committee.

Ripple's Stablecoin Initiative

Meanwhile, Ripple has unveiled plans to introduce its own stablecoin, pegged 1:1 to the US dollar on the XRP Ledger. With the stablecoin market currently valued at $150 billion, Ripple anticipates significant growth, projecting a value of $2.8 trillion by 2028. Garlinghouse's remarks underscore the evolving regulatory landscape surrounding stablecoins and the broader implications for the cryptocurrency industry as authorities increase their scrutiny and oversight.