cryptonewsland.com
- Ripple CEO Garlinghouse claims US actions against Tether could destabilize the Bitcoin market.
- Tether CTO Ardoino accuses Garlinghouse of spreading FUD ahead of Ripple’s stablecoin launch.
- Tether’s Ardoino emphasizes USDT’s compliance, liquidity reserves, and global usage in response.
Tether’s Chief Technology Officer, Paolo Ardoino, has responded to comments made by Ripple CEO Brad Garlinghouse about the US government’s potential sanctions against Tether, the stablecoin issuer.
In a recent podcast, Garlinghouse said that US regulatory actions against Tether could destabilize the Bitcoin market. Ardoino responded to these claims, claiming that Garlinghouse was spreading unwarranted anxieties about USDT, especially as Ripple prepares to launch its stablecoin.
Ardoino interpreted Garlinghouse’s comments as likely driven by Ripple’s anticipated stablecoin launch, implying a purposeful move to open a route in a market where Tether controls roughly 60%. This back-and-forth occurs at a critical time when the US government is increasing scrutiny on stablecoins, including USDT.
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…
Stablecoin Competition and Compliance
Ripple is preparing to launch its stablecoin, potentially increasing rivalry with Tether, the market’s biggest participant. Ardoino defended USDT by emphasizing Tether’s widespread use among hundreds of millions of users globally, as well as its strict adherence to compliance rules.
Ardoino also defended Tether, citing the stablecoin’s liquidity reserves and compliance with global financial standards, emphasizing its importance in ensuring market stability.
His defense comes amid broader debates regarding the durability of stablecoins and their position in the global financial system, triggered by a number of international regulatory remarks and financial studies that challenge the strength and stability of such digital assets.