As a researcher with a background in blockchain technology and stablecoins, I have closely followed the ongoing feud between the CEO of Tether, Paolo Ardoino, and Brad Garlinghouse of Ripple. It is my opinion that Ardoino’s response to Garlinghouse’s comments regarding USDT being the next target of the US government was both defensive and informative.
The head of Tether, its CEO, has criticized Brad Garlinghouse, the chief executive of Ripple Labs, for spreading concerns about Tether (USDT) in a lengthy post on social media platform X (previously Twitter). Ardoino poked fun at Ripple’s regulatory issues and then delved into the topic of Tether, USDT, and the company’s influence.
Ripple’s Garlinghouse Says Government Will Target Tether
As a crypto investor, I’ve been closely following the developments in the regulatory landscape for stablecoins. In a recent interview, Garlinghouse made some striking remarks about Tether and its USDT stablecoin. He indicated that Tether could be the next focus of government scrutiny, implying that the brunt of any crackdown on stablecoins might fall on Tether.
As a crypto investor, I recognize that the US government’s actions against Tether are a significant development. I consider Tether an essential component of the cryptocurrency ecosystem, and I’m uncertain about the potential repercussions for the broader market if its value or stability is disrupted.
Garlinghouse’s remarks could also be connected to recent accusations that terrorist organizations and embargoed nations have utilized Tether (USDT) as a means to circumvent financial restrictions set by the United States. In January, a report from the United Nations Office on Drugs and Crime pointed out that USDT had emerged as the favored method for various unlawful activities in Asia, including money laundering operations.
Last month, the US Treasury Deputy Secretary, Adewale Adeyemi, testified before the Senate Banking, House & Urban Affairs Committee that Russia has been employing cryptocurrencies like Tether (USDT) to bypass economic sanctions imposed by the United States. He stated that these methods are being used by Russia to “fund its military machine,” and recommended imposing additional sanctions on foreign crypto service providers that facilitate illicit financial transactions.
Tether’s Ardoino Responds to Garlinghouse
Ardoino began his response by calling Garlinghouse “uninformed” before providing an update on USDT.
An uniformed CEO, leading a company being investigated by the SEC, launching a competitive stablecoin (cui prodest), is being reported spreading fear about USDt.
Let me give you an update on Tether USDt ecosystem safety.
USDt is the most used stablecoin in the world, with…
— Paolo Ardoino 🍐 (@paoloardoino) May 13, 2024
Garlinghouse’s potential gains from instilling fear about USDT could stem from Ripple’s imminent introduction of a dollar-backed stablecoin, according to Ardoino. He emphasized the advantages of the Tether USDT ecosystem, which is extensively utilized by over 400 million people in developing countries and emerging markets. This usage is particularly significant because these communities often lack access to traditional banking services, with many relying on USDT as their primary financial accounts.
As a researcher studying the Tether ecosystem, I can attest to Ardoino’s claims regarding the safety and stability of the system. Tether and its associated stablecoin, USDT, have met several crucial requirements that are essential for widespread adoption in the crypto market.
As a researcher studying Tether’s compliance efforts, I can share that the CEO emphasized the company’s predominantly voluntary partnerships with law enforcement agencies worldwide to curb criminal activities and illicit transactions. In the past year, we have collaborated with 124 agencies in over 40 countries, resulting in the blockage of approximately $1.3 billion in funds tied to money laundering, scams, and hacking. Moreover, we’ve addressed 198 law enforcement requests (90 from US agencies) in the last 12 months and 339 (158 from US agencies) over the past three years. Our efforts have contributed significantly to US authorities by blocking over $639 million worth of USDT. This success is due to our dedicated team’s expertise in employing advanced tools to monitor Tether’s primary platform, secondary markets, and blockchains, as well as exchanges.
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2024-05-13 15:30