- Ripple CEO Brad Garlinghouse warns that the US government is targeting Tether, the issuer of the largest stablecoin by market value.
- This claim comes after findings that USDT is being used by terrorist organizations and sanctioned countries to evade US financial restrictions.
- Despite these concerns, Tether emphasizes its commitment to compliance standards and cooperation with law enforcement to combat illegal financial activities.
Ripple CEO Brad Garlinghouse raises concerns about the US government’s potential action against Tether, the largest stablecoin issuer, which could trigger significant disruption in the crypto space.
Ripple CEO Brad Garlinghouse Claims US Government is Targeting Tether
According to Garlinghouse, the US’s potential action against the stablecoin issuer could trigger a significant disruption in the crypto space. “The US Government is going after Tether. This is very clear to me. I see Tether as a very important part of the ecosystem and I don’t know how to predict its impact on the rest of the ecosystem,” Garlinghouse said.
USDT Used to Evade US Financial Restrictions
This claim comes after findings that USDT is being used by terrorist organizations and sanctioned countries to evade US financial restrictions. In April, US Deputy Treasury Secretary Adewale Adeyemo testified before the Senate Banking Committee, emphasizing that Russia is increasingly using alternative payment methods like Tether’s USDT to evade economic sanctions.
Tether’s Commitment to Compliance Standards
Despite these concerns, Tether emphasizes its commitment to compliance standards and cooperation with law enforcement to combat illegal financial activities. The company has taken proactive measures, including freezing addresses that hold a significant amount of tokens involved in illegal activities. Tether’s USDT, with approximately $110 billion in circulating supply, maintains its position as the leading stablecoin by market value. Notably, the company recorded a historic net profit of $4.52 billion in the first quarter.
Conclusion
While the US government’s potential action against Tether could disrupt the crypto space, Tether continues to emphasize its commitment to compliance standards and cooperation with law enforcement. As the leading stablecoin issuer, Tether’s actions and the government’s response will have significant implications for the crypto ecosystem.
