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Ripple CEO Warns of US Government Targeting Tether, Potential Impact - TheNewsCrypto

source-logo  thenewscrypto.com 13 May 2024 05:50, UTC
  • The CEO of Ripple considers Tether to be an integral component of the ecosystem.
  • Ripple is reportedly planning to release its own stablecoin in 2024.

According to Ripple CEO Brad Garlinghouse, the US government is “going after” USDT stablecoin issuer Tether, which might have unforeseen consequences for the cryptocurrency market.

In the same vein as the collapse of FTX and the following revelation of fraud committed by its leadership, Garlinghouse said on a May 10 edition of the World Class podcast that there will “100%” be another black swan event involving cryptocurrency.

Next Black Swan Event

Without going into detail, he said, “The U.S. government is going after Tether, that is clear to me.” He stopped short of implying that any potential U.S. action against Tether may be the next black swan. The “interesting one to watch” was his replacement term.

The CEO of Ripple considers Tether to be an integral component of the ecosystem. He went on to say that he is ill-equipped to foretell how the crypto community would react in the event that the United States took regulatory action against Tether. At the same time as Ripple is planning to release its own stablecoin in 2024, Garlinghouse makes these remarks.

Tether CEO Paolo Ardoino defended USDT by saying it is the most popular stablecoin in the world, with hundreds of millions of users, mostly in emerging economies. He emphasized that USDT has always kept prices stable, supported by strong liquidity reserves, trustworthy custodians, and stringent compliance procedures.

Earlier, in a letter submitted to the Department of Justice in October 2023, U.S. Senator Cynthia Lummis and Representative French Hill encouraged the agency to thoroughly investigate whether Binance and Tether were giving resources and material support to terrorist organizations.

In its response to the letter, Tether said that it has “always assisted law enforcement” whenever requested and was “fully committed” to maintaining collaboration with authorities worldwide.

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