- Brad Garlinghouse, Ripple CEO, has expressed his concerns over the U.S. government’s scrutiny of Tether, the leading stablecoin issuer by market capitalization.
- Garlinghouse shared his perspective on the matter during an interview, discussing his journey to success, lessons learned from Silicon Valley, and the global impact of XRP.
- He highlighted the importance of Tether within the crypto ecosystem and expressed uncertainty about the potential impact of U.S. regulatory actions against the company.
Brad Garlinghouse, Ripple CEO, discusses the potential impact of U.S. regulatory actions on Tether and the crypto industry at large.
Garlinghouse Highlights Tether’s Regulatory Concerns
During an interview with Chris Vasquez on the World Class YouTube channel, Garlinghouse predicted another crypto-related black swan event similar to the FTX collapse and exposure of fraud involving its executives. He emphasized that the U.S. government’s pursuit of Tether, the largest stablecoin issuer, is an “interesting one to watch”. Despite not directly labeling any potential U.S. action against Tether as the next black swan event, he stressed the importance of Tether within the crypto ecosystem and his uncertainty regarding the potential impact of U.S. regulatory actions against the company.
Criticism of SEC and Ripple’s Confidence in Crypto Industry
Garlinghouse criticized the Securities and Exchange Commission (SEC) for targeting weaker entities in the crypto space through “malicious and manipulative” methods. Despite the ongoing lawsuit filed by the SEC against Ripple, Garlinghouse remains confident in the crypto industry’s resilience against regulatory attempts. He also reiterated his belief that the crypto market has the potential to reach a market cap of $5 trillion by the end of this year and advised investors to adopt a long-term perspective.
US Officials Investigation into Tether
The U.S. Treasury Deputy Secretary, Adewale Adeyemo, recently testified before the Senate Banking Committee, noting Russia’s increasing reliance on alternative payment methods like Tether’s USDT to circumvent economic sanctions. In the past, Tether has faced criticism for its lack of transparency regarding its backing reserves. However, it has sought to address these concerns by publishing quarterly third-party audits of its USDT-backing treasury.
Conclusion
With the U.S. government’s increased scrutiny of Tether and the ongoing regulatory challenges facing the crypto industry, it is clear that the landscape is evolving. As Ripple’s CEO, Brad Garlinghouse, points out, these developments are worth watching closely. Despite the challenges, he remains confident in the industry’s resilience and potential for growth.
