Is Tether Next? CEO Responds To Brad Garlinghouse’s Claims Of US Gov’t Persecution

As an experienced financial analyst, I’ve closely followed the developments in the crypto industry and have observed how regulatory scrutiny has impacted key players. Based on my analysis of the situation, I believe that Brad Garlinghouse, CEO of Ripple, did not intend to attack Tether or its CEO, Paolo Ardoino, in his recent comments about the US government targeting Tether next. Instead, he was expressing his view on the current regulatory environment and the potential risks for stablecoin issuers.


In a recent podcast discussion, Brad Garlinghouse, the CEO of Ripple, expressed his belief that Tether, the leading Stablecoin provider in terms of market share, is under scrutiny from the US government next. However, Tether’s CEO, Paolo Ardoino, disagreed with Garlinghouse and accused him of instilling fear without substantial evidence.

Is Tether Next In Line?

On May 10th, I had the pleasure of being a guest on Chris Vasquez’s World Class podcast, hosted by Quantum’s founder. During our conversation, I shared my perspectives on the future direction of cryptocurrencies and weighed in on the ongoing regulatory actions by the US government towards the industry.

New Episode with Brad Garlinghouse @bgarlinghouse, CEO of @Ripple is live!

We Cover:– Brad’s wild journey scaling Ripple– Fighting SEC Lawsuits, the importance of taking risk & being courageous– Invaluable CEO lessons on building culture, hiring A+ players & enduring teams-…

— Chris Vasquez (@imchrisvasquez) May 10, 2024

With unexpected challenges in mind, Garlinghouse commends the crypto market’s impressive ability to bounce back, as evidenced by its response to the setbacks faced by FTX and Binance‘s regulatory hurdles over the past few years.

Two years ago, I found myself investing in the dynamic world of cryptocurrencies, where FTX and Binance stood out as two of the most impactful companies. Their visionary leaders, Sam Bankman-Fried of FTX and Changpeng ‘CZ’ Zhao of Binance, were key figures in shaping the crypto landscape, as Garlinghouse acknowledged.

After those occurrences, SBF (Samuel Bankman-Fried) was given a prison sentence of twenty years, while CZ (Changpeng Zhao) relinquished his role as Binance’s CEO and received a four-month imprisonment verdict. These unexpected incidents would have been beyond the foresight of Ripple’s CEO, acknowledging that black swans are inherently unpredictable due to their very nature as rare and unforeseen events.

As a researcher observing the challenges faced by this community and industry throughout the years, I cannot help but be in awe of their tenacity. The trials they have weathered serve as a reminder of the robustness and adaptability of this sector. This inspiring display of resilience should fill us with optimism for the future.

According to Garlinghouse, we can expect another unexpected event akin to a Black Swan to occur. He expressed intrigue at the prospect, even though unsure of its specific nature.

From my perspective as a researcher, it’s evident that the US government is taking action against Tether. The potential consequences of this crackdown are significant given Tether’s vital role in the cryptocurrency marketplace.

Tether’s CEO Responds

On Mondays, Paolo Ardoino, the CEO, addressed Garlinghouse’s criticisms head-on regarding X. He labeled Garlinghouse as an ill-informed CEO and accused him of disseminating FUD (fear, uncertainty, and doubt) concerning USDT.

When Ardoino perceived the comments as potentially hostile from the head of a firm under SEC investigation and introducing a rival stablecoin, he felt compelled to reassure the Tether community about the security of its ecosystem.

A CEO dressed in business attire, overseeing a firm under SEC scrutiny, is alleged to be instilling anxiety among audiences regarding USDT, as he introduces a competing stablecoin.

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

The CEO emphasized that USDT holds the title of “the most widely used stablecoin globally,” with a user base numbering in the hundreds of millions, primarily in emerging markets and developing countries. Furthermore, he noted that many mainstream journalists tend to overlook reporting on Tether’s international compliance initiatives.

As a crypto investor, I’ve come across Ardoino’s post discussing the elements that ensure Tether’s compliance. These factors include:

As a crypto investor, I’m concerned about the lack of transparency regarding Tether’s statistics. This refusal to share data sets off an alarming narrative that could potentially harm the reputation of stablecoins and cryptocurrencies as a whole. It seems like an attempt to shield the traditional financial establishment from disruption, maintaining their grip on power in the face of innovation.

Garlinghouse addressed the comment with clarity, revealing that his previous statements were not intended as criticism towards the stablecoin creator. Rather, he emphasized that the US authorities have made it clear they aim to exert greater oversight over issuers of USD-backed stablecoins.

Due to being the leading figure in the sector, Tether faced the possibility of being the initial target for regulatory scrutiny.

Is Tether Next? CEO Responds To Brad Garlinghouse’s Claims Of US Gov’t Persecution

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2024-05-14 05:12