• 26 May, 2024
News

Tether CEO Clashes with Ripple’s Brad Garlinghouse Over Regulatory Concerns

Tether CEO Paolo Ardoino publicly criticized Ripple’s CEO Brad Garlinghouse for his remarks about Tether’s dealings with U.S. regulators. During a podcast, Garlinghouse suggested that the U.S. government’s scrutiny of Tether was intensifying, which Ardoino quickly rebuffed in a detailed post on the X social media platform.

During a podcast conversation with Chris Vasquez on the “World Class,” Garlinghouse issued a stark warning about Tether, the largest stablecoin issuer. Highlighting the significant role Tether plays in the cryptocurrency ecosystem, he stated, 

The US government is going after Tether. That is clear to me.

Garlinghouse, whose company Ripple is itself under investigation by the SEC, hinted at potential regulatory troubles for Tether, noting the massive impact its $110.8 billion market cap could have on the broader cryptocurrency ecosystem. In response, Ardoino labeled Garlinghouse as an “uninformed CEO,” and defended Tether’s compliance and operational safety vigorously.

Ardoino’s post outlined Tether’s commitment to transparency and its ongoing cooperation with global law enforcement agencies, including collaborations with blockchain analytics firm Chainalysis. He emphasized that Tether operates with high liquidity reserves, and stringent compliance measures, and has blocked significant amounts tied to illicit activities. Further, Tether CEO stated, 

Tether blocked more than $1.3 billion since inception, mostly related to scams, hacks, ML. Approximately $1.6 million is related to terrorist finance.

Furthermore, Ardoino pointed out the initiatives Tether has taken to engage with various law enforcement bodies worldwide, blocking over $1.3 billion related to scams and hacks. He accused mainstream media of spreading sensationalistic narratives about cryptocurrencies, particularly stablecoins like USDT, which are predominantly used in emerging markets as primary financial resources.

Ripple has been embroiled in a significant legal battle with the SEC over its sales of XRP, which the SEC alleges were unregistered securities offerings. After a lengthy court battle, the SEC is now pushing for harsh penalties, including a court order to stop future violations and significant financial fines. Their reasoning is that Ripple’s ongoing sales and past behavior necessitate strict oversight to deter future violation

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