Ripple CEO Warns of US Government Targeting Tether Ripple’s CEO, Brad Garlinghouse, recently talked about worries about the US government looking closely at Tether, a company that issues a type of cryptocurrency called stablecoins. He thinks this scrutiny could cause big, unpredictable changes in the cryptocurrency market.
He said this during a podcast called World Class on May 10. Garlinghouse believes that the US government might soon take action against Tether, which he compares to a rare and unexpected event called a “black swan,” which could seriously affect the whole crypto industry.
Ripple CEO Warns of US Government
Garlinghouse thinks US authorities are focusing more on Tether, which is responsible for the biggest stablecoin called USDT. He didn’t directly say this action against Tether would be a “black swan” event, but he stressed that it’s something important to watch out for.
He said, “The US Government is going after Tether (USDT issuer). That is 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 would have on the rest of the ecosystem.”
Even though Garlinghouse sees Tether as crucial for cryptocurrencies, he’s unsure about what might happen if regulators step in. Meanwhile, Ripple plans to introduce its own stablecoin later this year, which could make things more complicated regarding regulations.
David Schwartz, Ripple’s Chief Technology Officer, explained their stablecoin will be backed by a mix of dollar deposits, short-term government bonds, and other cash equivalents to ensure transparency and follow the rules.
It’s worth noting that Garlinghouse has been vocal about disagreeing with recent moves made by the US Securities and Exchange Commission (SEC) against cryptocurrency companies and the digital asset world.
Tether, the company behind USDT, has been facing more scrutiny from US authorities. Last October, some senators asked the Department of Justice to look into Tether’s possible links to supporting terrorism. Tether has said they’re cooperating with law enforcement and following global rules. But there are reports suggesting ongoing investigations into how Tether handles cryptocurrency-related money, especially about whether they’re hiding things from banks.
Tether has been criticized for not being clear about the money it has as a backup. In 2021, they had to pay a $41 million fine because they didn’t accurately report their backup money, making people doubt if they really had enough money to support USDT.
As regulators look closer at Tether, the whole crypto industry is facing more uncertainty. Garlinghouse’s warning shows how serious the impact of regulatory actions against Tether could be, stressing the need for better transparency and following the rules in the stablecoin world.
⚠️Warning😒
“I’m not your financial advisor ✅. I’m just sharing my own knowledge. Please do proper research before investing. Thank you. 🙏🏻✅”
XRP problems are over, no more decrease in price.