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Tether CEO slams Ripple chief’s USDT remarks: Here’s what he said

source-logo  invezz.com 13 May 2024 09:51, UTC

Tether CEO Paolo Ardoino has slammed Ripple CEO Brad Garlinghouse’s remarks that the US government is “going after” Tether (USDT) as mere “FUD.”

The Tether CEO also hit back at Garlinghouse as a CEO at the helm of a company currently under investigation by the US Securities and Exchange Commission (SEC).

UDST is the world’s largest stablecoin, currently leading the market with over $111 billion in value. Tether also issues other stablecoins including one pegged against the Euro.

Meanwhile, Ripple is an enterprise blockchain and cryptocurrency solutions provider and the company behind XRP.

SEC sued Ripple in December 2020, with a US judge declaring XRP was not a security in a summary judgement in July 2023.

What did the Ripple CEO say about Tether?

As Invezz highlighted earlier today, Ripple CEO Brad Garlinghouse recently opined that the US government was targeting Tether.

The comments, which Garlinghouse voiced during a World Class podcast on May 10, also included the view that crypto could still witness another black swan event much like what happened when FTX imploded in 2022.

The Ripple CEO’s comments attracted varying responses from the crypto community, with many noting these as potential digs at Tether as Ripple looks to launch its own stablecoin later this year.

Tether CEO’s response

In a response he posted on his official X account, Ardoino criticised the Ripple chief, referring to the episode as remarks from “an uninformed CEO.”

Ardoino’s view is that Garlinghouse’s observation represents a hypocritical take on the matter as Ripple is still battling SEC’s lawsuit. Ripple has also announced plans to launch its own stablecoin, which could compete with Tether’s 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.

Let me give you an update on Tether USDt ecosystem safety.

USDt is the most used stablecoin in the world, with…

— Paolo Ardoino 🍐 (@paoloardoino) May 13, 2024

The latest commentary about Tether comes as scrutiny around stablecoins has increased across the globe.

But while USDT has in the past attracted regulatory attention over its reserves, the company has maintained its transparency and adheres to compliance requirements.

Commenting on the issue of compliance, Ardoino noted:

“There are […] different crucial requirements that stablecoins need to fulfill in order to become widely adopted. USDt proved overtime to have strong price stability, highly liquid reserves, top tier custodians and profound compliance.”

Part of Tether’s compliance has included collaboration with 124 law enforcement agencies across more than 40 countries.

The company has also blocked or frozen over $1.3 billion in crypto linked to scams, hacks and money laundering. Tether has also blocked roughly $1.6 million in transactions connected to terrorist financing.

“Tether cooperates directly with law enforcement agencies, while other stablecoins, although they claim to be “more compliant” they require a judge order, allowing hackers, scammers and criminals a long time to move funds around,” the Tether CEO concluded.

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