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Ripple CEO's Tether Comments Ignite Response from Tether CEO | Cryptoglobe

source-logo  cryptoglobe.com 13 May 2024 06:15, UTC

During a recent interview on the “World Class” podcast, Ripple CEO Brad Garlinghouse hinted at impending regulatory scrutiny from the US government targeting Tether (USDT), particularly at a time when stablecoin regulations are gaining momentum. Garlinghouse expressed his concerns about the critical role Tether plays in the crypto ecosystem and the potential disruptive consequences if the U.S. government were to take decisive actions against the stablecoin issuer.

Garlinghouse articulated that, based on recent developments and regulatory trends, it seemed evident to him that Tether would likely be a target. He underscored the importance of Tether in the market, speculating on the significant impact that stringent US measures could have, not just on Tether but on the wider cryptocurrency space.

Ripple, meanwhile, is gearing up to introduce its own stablecoin, slated for release possibly by next month. This upcoming launch places Ripple in direct competition with Tether, which dominates the market with a nearly 60% share.

Responding to these insinuations, Tether CEO and Bitfinex CTO Paolo Ardoino came forward with a vigorous defense of Tether. Ardoino criticized Garlinghouse for allegedly spreading fear about USDT, suggesting that the remarks might have been motivated by Ripple’s business interests tied to its forthcoming stablecoin launch. He labeled such claims as coming from “an uninformed CEO” of a company currently under investigation by the SEC.

Ardoino then provided an extensive overview of Tether’s operational safety and compliance efforts. He highlighted that Tether serves hundreds of millions of users, particularly in emerging markets where traditional banking services are inaccessible. Ardoino proudly stated that for many in these regions, USDT acts as both a checking and savings account.

Detailing the compliance measures in place, Ardoino noted that Tether respects the OFAC / SDN lists and has a dedicated internal investigation team that works closely with various tools to monitor transactions on primary and secondary markets. Furthermore, he mentioned Tether’s proactive collaboration with Chainalysis to ensure state-of-the-art monitoring and compliance training. Tether’s history of cooperation with law enforcement is robust, having partnered with 124 agencies from over 40 countries and voluntarily participated in hundreds of legal requests to block or freeze illicit transactions.

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