Ripple CEO Clarifies Tether Comments After A Critical Tweet From Garlinghouse

Key Points:

• Ripple CEO highlighted U.S. actions towards Tether.
• Tether CEO stated $1.3 billion in illicit transactions were blocked.
• Garlinghouse defended Tether, hinting at U.S. desire for control.

Ripple CEO clarifies Tether Comments, acknowledging its importance in the crypto ecosystem amidst US government actions. He defended Tether, suggesting the US wants more control over stablecoin issuers.

On May 13, Ripple CEO Brad Garlinghouse shed light on the U.S. government’s actions towards Tether (USDT issuer).

Garlinghouse’s Perspectives on U.S. Actions Towards Tether

Although acknowledging Tether’s importance in the ecosystem, Garlinghouse couldn’t predict the impact of these actions on the broader crypto industry.

His comments were made amidst revelations of USDT being used by sanctioned countries and terrorist organizations to evade U.S. financial restrictions.

U.S. Treasury Deputy Secretary, Adewale Adeyemo, highlighted Russia’s increased use of Tether to circumvent economic sanctions.

Readmore: Crypto Giants Clash: Ripple And Tether CEOs Now Debate Stablecoins’ Future

Reactions and Responses from Tether CEO Paolo Ardoino

In response, Tether CEO Paolo Ardoino criticized Garlinghouse’s comments as fear-mongering on Twitter, reminding that Ripple was undergoing an SEC investigation itself. Ardoino’s tweet accused Garlinghouse of spreading fear about USDT.

According to Paolo Ardoino, Tether has blocked over $1.3 billion in illicit transactions over the past three years, including around $1.6 million related to terrorist financing.

Tether has cooperated with law enforcement, blocking wallets upon 339 requests, 158 from the U.S., and has blocked over $639 million in collaboration with U.S. law enforcement.

Ripple CEO Clarifies Tether Comments

Garlinghouse later defended Tether on Twitter, reiterating its importance in the ecosystem and his belief that the U.S. government’s actions stem from a desire for more control over dollar-backed stablecoin issuers.

My point was that the US govt has clearly indicated they want more control over USD-backed stablecoin issuers, and thus, Tether, as the largest player, is in their line of sight.

Garlinghouse wrote