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Ripple CEO Garlinghouse expresses concerns over Tether's regulatory challenges.
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Ardoino criticizes Garlinghouse, highlighting Ripple's SEC investigation and stablecoin plans.
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Tether CEO underscores global law enforcement collaboration and transparency efforts.
In a recent exchange of statements, Tether CEO Paolo Ardoino vigorously defended against accusations of increased regulatory scrutiny from the US government. He also criticized Ripple CEO Brad Garlinghouse’s concerns about Tether (USDT) impacting the broader cryptocurrency ecosystem.
Garlinghouse’s Concerns Over Tether
On May 10th, Brad Garlinghouse expressed worries about the US government’s increasing focus on Tether. He said, “The U.S. Government is going after Tether. That is clear to me. I view Tether as a very important part of the ecosystem and I don’t know how to predict the impact it would have on the rest of the ecosystem.”
Ripple CEO Brad Garlinghouse: The US Government is going after Tether (USDT issuer). That is clear to me. I view Tether as a very important part of the ecosystem and I don’t know how to predict the impact it would have on the rest of the ecosystem. https://t.co/fJ6RME6TN1
— Wu Blockchain (@WuBlockchain) May 13, 2024
Garlinghouse highlighted the potential effects of these regulatory actions on the broader cryptocurrency world.
Further, he also talked about worries that Tether is being used by terrorist networks and countries like Russia to evade US economic sanctions, raising anxieties in the crypto community about Tether’s role and impact.
Tether CEO Slammed Ripple CEO
In response, Paolo Ardoino, CEO of Tether, criticized Garlinghouse as an “uninformed CEO.” He highlighted that Ripple, the company led by Garlinghouse, is currently under investigation by the U.S. Securities and Exchange Commission (SEC).
TETHER CEO DEFENDS AGAINST RIPPLE CEO'S CLAIMS OF US GOVERNMENT SCRUTINY: WHAT WE KNOW
— BSCN (@BSCNews) May 13, 2024
– Tether CEO Paolo Ardoino has responded to comments made by Ripple CEO Brad Garlinghouse in a recent X post, who suggested that the US government is intensifying its scrutiny of Tether.
-… https://t.co/MVC7VBRIVV pic.twitter.com/NBjnfPLc8g
Additionally, Ardoino spotlights Ripple’s plan to launch a stablecoin competing with Tether’s USDT. Perhaps the SEC has already described Ripple’s upcoming dollar-backed crypto as an unregistered crypto asset.
Tether’s Commitment to Stability
Ardoino defended Tether’s operational integrity, emphasizing its stability, liquidity, and compliance measures. He further highlighted the stablecoin’s robust price stability and its backing by highly liquid reserves and reputable custodians.
An uniformed CEO, leading a company being investigated by the SEC, launching a competitive stablecoin (cui prodest), is being reported spreading fear about USDt.
— Paolo Ardoino 🍐 (@paoloardoino) May 13, 2024
Let me give you an update on Tether USDt ecosystem safety.
USDt is the most used stablecoin in the world, with…
Moreover, Ardoino points out Tether’s adherence to the Office of Foreign Assets Control (OFAC) and Specially Designated Nationals (SDN) lists, essential for maintaining regulatory compliance.
Lastly, Tether CEO noted proactive engagement with law enforcement agencies globally, collaborating with 124 bodies across 40 countries. He also outlined Tether’s utilization of advanced monitoring tools, facilitated by partnerships with industry-leading firms like Chainalysis, to ensure transparency and regulatory adherence.
Amid increasing regulatory scrutiny, tensions between industry leaders like Ripple and Tether underscore broader concerns about compliance and market stability.