Tether CEO Paulo Ardoino has slammed Ripple chief Brad Garlinghouse for his comments about enforcement action against Tether, adding he was spreading fear, uncertainty, and doubt (FUD) about USDT.
Ripple has plans to launch its own stablecoin product in the near future.
Ripple CEO Claims Authorities Going After Tether
Tether has been able to carve out a dominant position in the market thanks to its USDT stablecoin, which boasts the highest trading volume and market capitalization among stablecoins. However, Tether has constantly faced questions about its reserves and whether they are sufficient for the number of tokens the entity has issued. Ripple CEO Brad Garlinghouse recently brought these doubts back into focus, warning that Tether is under investigation by US authorities, stating it was clear that the government was going after Tether, which could have an unprecedented impact on the crypto market. Speaking on an episode of the World Class Podcast, Garlinghouse stated there could 100% be another crypto-related black swan event similar to the collapse of FTX.
“The US government is going after Tether, that is clear to me. I view Tether as a very important part of the ecosystem.”
Ardoino Slams Comments
However, Ardoino hit back at Garlinghouse, calling his comments baseless fear-mongering from an “uninformed CEO” whose company is itself engaged in a high-profile legal battle with the United States Securities and Exchange Commission. The Tether CEO stated that USDT had rightly earned its position as the leading stablecoin in the market thanks to its proven track record, backing from trusted custodians, and strict compliance measures that included respecting OFAC sanctions lists, monitoring blockchain activity, and working with law enforcement agencies to address and tackle criminality.
Tether’s Compliance Efforts
Ardoino also discussed the safety of the larger USDT ecosystem, explaining that the USDT stablecoin and other Tether products complied with sanctions lists issued by the United States Office of Foreign Assets Control. Tether’s collaboration with law enforcement agencies across borders had led to the blocking of $1.3 billion in illicit crypto and around 339 wallets tied to illegal financial activities. Unlike other stablecoin issuers, Ardoino added that Tether was cooperating directly with regulators.
“At Tether, we believe that our main mission is to ensure that our entire community can benefit from a safe global financial ecosystem. There are, in fact, different crucial requirements that stablecoins need to fulfill in order to become widely adopted. USDT proved over time to have strong price stability, highly liquid reserves, top tier custodians, and profound compliance,” the Tether chief stated.”
Meanwhile, Ripple plans to launch a US Dollar stablecoin sometime in 2024. The company’s chief technology officer stated that it would back the token with dollar deposits, short-term government Treasury bills, and other cash equivalents.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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