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Ripple CEO Warns: US Government May Be Targeting Tether Next


In a recent interview, Ripple CEO Brad Garlinghouse made a bold statement suggesting the US government may be setting its sights on a new target, Tether.

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Garlinghouse in the interview said this development would be an interesting one to pay attention to.

Tether in Trouble? Ripple CEO Raises Concern About SEC Scrutiny

Ripple CEO Brad Garlinghouse sent shockwaves through the crypto world with his recent comments on Tether, the issuer of the biggest stablecoin USDT.

In a podcast interview, Garlinghouse strongly suggested that the US government is setting its sights on Tether.

While Garlinghouse didn’t predict the exact actions the US might take, he emphasized that any potential regulations aimed at Tether will be “interesting to watch.”

This statement comes as US authorities continue to scrutinize stablecoin.

Interestingly, Garlinghouse acknowledges Tether’s importance within the crypto world.  “I view Tether as a very important part of the ecosystem,” Garlinghouse said in the interview.

However, he admitted that he’s not sure about how US actions against Tether might play out and its impact in the broader crypto space.

This uncertainty adds another layer of concern for crypto investors already on edge after events like the FTX collapse.

Meanwhile, note that Garlinghouse’s comments also come as Ripple, his own company, is planning to launch its own stablecoin later in 2024.

Stablecoin Issuer Faces Questions Over Reserves and Potential Ties to Terrorism Funding

Lawmakers suspect Tether, along with crypto exchange Binance, might be financing terrorism.

In October 2023, U.S. Senator Cynthia Lummis and Representative French Hill wrote a letter to the Department of Justice.

In this letter, they were asking the Department of Justice to look closely at whether Binance and Tether are helping to support terrorism in any way.

In her tweet, this development comes after they received a “report that Binance and Tether served as intermediaries for Hamas and engaged in illicit activities.

Tether denies these claims and insists on cooperating with law enforcement. “Tether’s commitment to fighting illicit use of stablecoins,” Tether responded.

In addition, Tether asserted that they have a Know Your Customer (KYC) feature that enables them to verify the identity of its customers.

Also, according to them, they have a system that monitors suspicious transactions and accounts.

However, Tether has a history of being unclear about how it backs its stablecoin with real dollars.

In the past, they’ve been fined for misrepresenting their reserves. This lack of transparency worries regulators and investors.

Another competitor, Ripple, plans to launch a similar stablecoin later this year. They promise to back their token with actual dollars and government bonds, aiming to be more transparent than Tether.

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