Ripple CEO Brad Garlinghouse has warned that the US government is targeting Tether, the largest issuer of the stablecoin by market cap. Garlinghouse made this statement while speaking with Chris Vasquez on a recent episode of his World Class Podcast.
Ripple CEO Brad Garlinghouse Claims the US Government Targeted Tether
According to Garlinghouse, potential US action against the stablecoin issuer could trigger significant disruption in the crypto space.
“The US Government is going after Tether. That's very clear to me. I see 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,” Garlinghouse said.
This claim comes after findings emerged that USDT was 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 and emphasized that Russia was increasingly using alternative payment methods such as Tether's USDT to evade economic sanctions.
“We have seen Russia increasingly turn to alternative payment mechanisms, including the stablecoin tether, to evade our sanctions and continue funding its war machine,” Adeyemo wrote.
Simultaneously, a UN report shed light on the widespread use of cryptocurrencies for money laundering, with USDT on the TRON blockchain emerging as an important tool, especially in illegal online gambling platforms.
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 holding a significant amount of its tokens involved in illegal activities.
Tether's USDT maintains its position as the leading stablecoin by market cap, with a circulating supply of approximately $110 billion. Notably, the company achieved a historic net profit of $4.52 billion in the first quarter.
*This is not investment advice.