Tether has recently challenged comments made by Ripple CEO Brad Garlinhouse regarding the US government” going after” USDT. Indeed, during an appearance on The World Class podcast, Garlingohuse said, “The US government is going after Tehter, that is clear to me.”

Thereafter, Tether CEO Paolo Ardoino took to X (formerly Twitter) to challenge those remarks. Specifically, Ardoino alleged that Garlinhouse was perpetuating “fear about USDT” with ulterior motives. He made note of Ripple’s impending Stableoin offering, which is set to compete with USDT when it launches this July.

Source: Bloomberg

Also Read: Ripple Analyst Says XRP Closing Above This Level Is Bullish: Can It Hit $1 In May?

Tether CEO Defends USDT From Ripple CEO FUD

Over the last several years, the didgitla asset market has been forced to contend with unclear regulation by the US Securities and Exchange Commission (SEC). The agency’s regulation-by-enforcement approach has led to a plethora of lawsuits, with no clear standard being established.

One of the biggest victims of this methodology was Ripple, who was sued by the agency in 2020. Subsequently, that legal battle is still ongoing, with native token XRP still in the crosshairs of the SEC. However, the company has not ceased its arduous defense of the asset.

However, that situation has led the head of the company to make some questionable statements. Specifically, CEO Brad Garlinghouse recently noted that the US was “going after” stablecoin issuer Tether next.

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

Also Read: Tether Stablecoin Expands To TON Network, Continues Growth

Now, Tether has challenged the Ripple CEO’s remarks regarding the US targeting USDT. Specifically, Tether CEO Ardoino has called Garlinghouse “an uninformed CEO, leading a company being investigated by the SEC, launching a competitive stablecoin,” and spreading FUD regarding the asset.

Thereafter, Ardoino assures that the steps that Tether has taken to ensure USDT ecosystems are safe, aligned with regulatory standards, and secure. Moreover, he noted Tether’s collaboration with more than 124 law enforcement agencies across 40+ countries. Therefore, it is ensuring its efforts to remain in regulatory compliance.

This statement is interesting because it appears as though the SEC is targeting many digital asset companies. The next several months will be important, as either Tether or Ripple will be correct in their summations of this ongoing disagreement.


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