Ripple CEO accuses US government of targeting USDT

Ripple CEO Brad Garlinghouse has warned that the US government is targeting Tether, the source of the largest stablecoin by market capitalization.

Garlinghouse made the revelation while speaking on a new episode of the World Class podcast with Chris Vasquez.

The US government is attacking Tether

According to Garlinghouse, possible US action against the stablecoin issuer could lead to major disruption in the cryptocurrency space.

"The US government is going after Tether. That's clear to me. I view Tether as a very important part of the ecosystem and I don't know how to predict the impact it will have on the rest of the ecosystem. ecosystem,” he said. "He said Garlinghouse.

This confirmation comes amid revelations that USDT is exploited by terrorist organizations and sanctioned countries to evade US financial restrictions. In April, Adewale Adeyemo, Deputy Secretary of the U.S. Treasury, testified before the Senate Banking Committee. Highlighting Russia's growing use of alternative payment methods such as Tether's USDT to avoid economic sanctions.

And he wrote Adeyemo: “We have seen Russia increasingly turn to alternative payment mechanisms – including stablecoins – to try to circumvent our sanctions and continue to finance its war machine. »

At the same time, a UN report highlighted the widespread use of cryptocurrencies for money laundering, with USDT appearing on the TRON blockchain as a significant means. Especially on illegal online gaming platforms.

Learn more: Best stablecoins in 2024: USDT or USDC?

Despite these concerns, Tether emphasizes its commitment to compliance standards and cooperation with law enforcement to combat illicit financial activities. The company has taken proactive measures, including freezing addresses containing a large amount of its tokens involved in illegal activities.

Tether's USDT maintains its position as the leading stablecoin in terms of market capitalization. It has outstanding reserves of approximately $110 billion. It is worth noting that the company made a historic net profit of $4.52 billion in the first quarter.

However, despite the controversies surrounding the largest stablecoin issuer, Ripple has entered the sector. Last month, the company announced plans to introduce its own stablecoin.

“Ripple’s move to stablecoins is not just about innovation. It is also about contributing to the XRPL ecosystem and paving the way for a more robust and diverse crypto landscape,” Ripple said.

Since the announcement, the company has not provided additional details about the asset. However, David Schwartz, Ripple's chief technology officer, hinted that the name of the stablecoin could be revealed in June.