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Breaking: Tether CTO Criticizes Ripple CEO Garlinghouse Over USDT Comments

In a recent interview, Ripple CEO Brad Garlinghouse speculated that the US government’s next focus in the cryptocurrency sector might be Tether (USDT). He highlighted the government’s efforts to implement stablecoin regulations and suggested that major players like Tether could be targeted.

Tether CTO

However, Tether CTO Paolo Ardoino quickly responded, accusing Garlinghouse of spreading misinformation about USDT and providing clarifications on the matter.

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Targeting Tether Could Disrupt Cryptocurrency, Says Ripple CEO

In a recent episode of the World Class podcast hosted by Chris Vasquez, Ripple CEO Brad Garlinghouse suggested that the US government may soon target Tether (USDT), potentially causing significant disruptions in the cryptocurrency ecosystem. Garlinghouse emphasized the critical role of Tether in the industry and expressed concerns about the broader impact of such actions.

Garlinghouse stated, “The US government is targeting Tether. That’s evident to me. I see Tether as a critical component of the ecosystem, and I’m not sure how to estimate its impact on the rest of the ecosystem.”

This assertion follows reports that terrorist groups and sanctioned nations are using USDT to evade US financial restrictions. In April, US Treasury Deputy Secretary Adewale Adeyemo testified before the Senate Banking Committee about Russia’s increasing reliance on alternative payment systems like Tether’s USDT to bypass economic sanctions.

As Ripple prepares to launch its own stablecoin, likely in June, Garlinghouse’s comments on Tether have sparked speculation about his motives. With Tether holding nearly 60% of the stablecoin market share, some question if Garlinghouse aims to gain a foothold in this competitive field.

In response, Tether CTO Paolo Ardoino accused Garlinghouse of spreading misinformation. Ardoino questioned the credibility of Garlinghouse’s statements, especially given ongoing SEC investigations into Ripple. He used the Latin phrase “cui prodest,” meaning “who benefits,” to suggest possible ulterior motives behind Garlinghouse’s comments.

Ardoino defended USDT, highlighting its status as the world’s most widely used stablecoin, supported by strong liquidity reserves, reputable custodians, and strict compliance controls. He emphasized Tether’s role in maintaining price stability and its extensive use in emerging markets and developing countries.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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