Ripple CEO Brad Garlinghouse believes that the United States government is actively pursuing stablecoin issuer Tether, a move that could have significant implications for the cryptocurrency markets. Speaking on the World Class podcast on May 10, Garlinghouse stated that he is certain there will be another major event in the crypto industry, comparable to the collapse and subsequent revelation of fraud at FTX. While he did not explicitly label any potential U.S. action against Tether as the next black swan event, he described it as an “interesting one to watch.” Garlinghouse emphasized the importance of Tether within the crypto ecosystem and expressed uncertainty about the impact that U.S. regulatory measures against Tether would have.
These comments from Garlinghouse come as Ripple prepares to launch its own stablecoin later this year. Tether Holdings Limited, the parent company of Tether, operates a network of related subsidiaries worldwide that oversee various aspects of the stablecoin’s issuance and management. Tether is currently the world’s largest stablecoin in terms of market capitalization. In an October 2020 letter, U.S. Senator Cynthia Lummis and Representative French Hill urged the Department of Justice to thoroughly investigate the extent to which Binance and Tether are providing support to terrorism.
Tether responded to the letter by stating that it has always cooperated with law enforcement agencies and remains fully committed to working with authorities globally. In November 2022, it was reported that Manhattan-based U.S. Attorney Damian Williams had taken over a previous Justice Department investigation into Tether’s alleged concealment of funds linked to cryptocurrency. The company has faced criticism for its lack of transparency regarding its reserves and has undertaken quarterly third-party audits of its USDT reserves in recent years.
In October 2021, Tether paid a $41 million fine to the Commodity Futures Trading Commission after the regulator accused the company of misrepresenting its reserve holdings. The commission found that Tether only held sufficient reserves to back USDT for 27.6% of the examined period between June 1, 2016, and February 25, 2019. Ripple, Plans to introduce its own stablecoin backed by the U.S. dollar later this year. Ripple CTO David Schwartz revealed that the token would be supported by dollar deposits, short-term government Treasurys, and other cash equivalents.
The launch of Ripple’s stablecoin adds another layer of excitement to the crypto world and opens up new possibilities for users. What a thrilling time to be involved in cryptocurrencies!
The ongoing investigations into Tether’s alleged concealment of funds linked to cryptocurrency highlight the need for transparency and accountability in the industry.
Tether’s lack of transparency in the past may have raised concerns, but they’ve taken steps to address the issue with third-party audits. Progress deserves recognition.
Ripple’s plan to introduce its own stablecoin shows their confidence in the market and their determination to provide value to users. Exciting times ahead! 🌈
The collaboration between Ripple and Tether in shaping the future of stablecoins could bring about positive changes in the entire industry. Let’s embrace this potential!
The market capitalization of Tether is impressive, and any regulatory action against it will undoubtedly have far-reaching consequences. Stay tuned!
Kudos to Brad Garlinghouse for highlighting the importance of Tether and its potential regulatory challenges. A forward-thinking CEO!
Brad Garlinghouse’s emphasis on Tether’s significance within the crypto ecosystem and the uncertainty surrounding potential U.S. actions shows his deep understanding of the industry.
It’s concerning that Tether, the world’s largest stablecoin, has faced multiple allegations and investigations. This raises doubts about its reliability and trustworthiness.
Quarterly audits of Tether’s reserves are not enough to gain trust. We need more transparency and accountability in the crypto market.
With Ripple’s stablecoin on the horizon, the crypto market is in for some exciting competition and innovation. Buckle up for a thrilling ride!
Ripple’s stablecoin backed by cash equivalents ensures stability and gives users confidence in its value. An excellent addition to the crypto ecosystem!
Ripple’s stablecoin backed by the U.S. dollar sounds like a solid move. It brings stability and trust to the crypto space.
It’s concerning that Tether, the largest stablecoin, doesn’t have sufficient reserves to back its tokens for a significant period of time. This raises questions about its stability.
Tether’s commitment to working with authorities globally should be acknowledged. Cooperation is key in this evolving industry.
Tether’s misrepresentation of its reserve holdings is a serious offense. They should face more severe consequences than just a fine.
Ripple’s plan to launch its stablecoin backed by the U.S. dollar shows their commitment to meeting the demands of users and adapting to the evolving market.
Tether’s quarterly third-party audits of its reserves show that they are taking steps towards transparency. Trust is crucial in the crypto world.
The crypto industry is constantly evolving, and we can’t underestimate the potential impact of U.S. regulatory measures on stablecoin issuers like Tether. Stay informed!
It’s crucial for the crypto market to have stablecoins backed by real-world assets. Ripple’s stablecoin backed by the U.S. dollar is a step in the right direction.