TL;DR
- Tether vs Ripple Dispute: Tether’s CEO Paolo Ardoino refutes Ripple CEO Brad Garlinghouse’s insinuations about US government actions against Tether, accusing him of spreading fear and being hypocritical, especially as Ripple faces SEC scrutiny and plans to launch a competing stablecoin.
- Compliance Efforts: Ardoino highlights Tether’s extensive cooperation with law enforcement worldwide, noting its proactive efforts in blocking over $1.3 billion linked to illicit activities and responding to hundreds of law enforcement requests, particularly from the U.S.
- Operational Integrity: Ardoino defends Tether’s operational integrity, emphasizing its price stability, liquid reserves, and role as a banking alternative in emerging markets, while maintaining a firm stance on compliance and transparency amidst the ongoing public debate with Ripple.
Tether’s CEO Paolo Ardoino has publicly refuted claims made by Ripple CEO Brad Garlinghouse regarding the U.S. government’s alleged targeting of Tether (USDT), the world’s largest stablecoin issuer. Ardoino’s response comes after Garlinghouse hinted at potential U.S. agency action against Tether, suggesting that the government is “going after” the stablecoin giant.
Ardoino responded to Garlinghouse’s concerns on social media, accusing him of instigating “fear about USDT” and labeling his remarks as hypocritical. The CEO of Tether highlighted that Ripple is currently under SEC scrutiny and is on the verge of introducing a stablecoin that could rival 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
Ardoino emphasized Tether’s commitment to compliance, highlighting its cooperation with law enforcement agencies worldwide. Tether has been proactive in its collaboration with 124 law enforcement agencies across over 40 countries, blocking over $1.3 billion worth of assets linked to scams, hacks, and money laundering activities.
In the past three years, Tether has complied with 339 requests from law enforcement, with 158 of those coming from U.S. agencies. In the last 12 months alone, Tether has responded to 198 requests to block wallets, 90 of which were from the U.S.
Tether’s Operational Integrity and Price Stability
Ardoino emphasized Tether’s operational integrity, highlighting its strong price stability, ample liquid reserves, and trustworthy custodians. He contended that USDT has functioned as a banking alternative for users in emerging economies, offering them a dependable and stable method of conducting transactions.
The clash between the two CEOs has sparked discussions within the crypto community, with some viewing Garlinghouse’s remarks as a strategic move, given Ripple’s plans to enter the stablecoin market in 2024.
Others see it as an ominous sign of impending regulatory actions. However, Garlinghouse did acknowledge the significant role Tether plays in the cryptocurrency ecosystem. The crypto market has yet to react to the public debate, as Ripple’s XRP price has been fluctuating since the early hours of trading on Monday.
As the debate continues, Tether’s stance remains firm. The company has made it clear that it prioritizes compliance and transparency, setting an example for other stablecoin issuers by directly cooperating with law enforcement agencies, rather than waiting for judicial orders.
Ardoino pointed out that Tether’s forward-thinking strategy enables the platform to avert any potential misuse and sustain the confidence of its global user base, which numbers in the millions.
