Ripple
CEO
Brad
Garlinghouse
recently
expressed
his
belief
that
the
United
States
government
is
targeting
Tether,
the
world’s
largest
stablecoin
issuer
by
market
capitalization.
TLDR
Tether,
which
issues
the
USDT
stablecoin,
has
faced
ongoing
scrutiny
regarding
its
transparency
and
the
reserves
backing
its
token.
The
company
has
been
criticized
for
its
lack
of
clarity
surrounding
its
holdings
and
has
been
investigated
for
alleged
misconduct.
In
October
2021,
Tether
paid
a
$41
million
fine
to
the
Commodity
Futures
Trading
Commission
for
misrepresenting
its
reserve
holdings.
Garlinghouse’s
comments
come
as
Ripple,
the
company
behind
the
XRP
cryptocurrency,
prepares
to
launch
its
own
stablecoin
in
2024.
The
Ripple
CEO’s
statements
have
drawn
criticism
from
Tether
CEO
Paolo
Ardoino,
who
took
to
social
media
to
call
Garlinghouse
an
“uninformed
CEO.”
Ardoino
pointed
out
that
Ripple
itself
is
currently
under
investigation
by
the
U.S.
Securities
and
Exchange
Commission
(SEC)
and
suggested
that
Garlinghouse’s
comments
were
motivated
by
Ripple’s
forthcoming
stablecoin,
which
could
compete
with
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
Ardoino
defended
Tether’s
compliance
efforts,
highlighting
the
company’s
collaboration
with
blockchain
analytics
firm
Chainalysis
and
law
enforcement
agencies
worldwide.
He
emphasized
that
Tether
leverages
blockchain
technology’s
transparency
to
meet
regulatory
requirements.
As
the
cryptocurrency
industry
continues
to
evolve,
the
role
of
stablecoins
and
their
regulation
remains
a
topic
of
ongoing
discussion.
The
potential
impact
of
U.S.
regulatory
action
against
Tether
is
difficult
to
predict,
given
the
company’s
significant
market
presence.
However,
the
emergence
of
new
stablecoin
competitors,
such
as
Ripple’s
upcoming
offering,
may
reshape
the
landscape
and
provide
alternatives
for
investors
and
users.
Go to Source
Author: Oliver Dale
