Ripple CEO Warns of US Crackdown on Tether, Stablecoin Giant Fights Back

According to a recent BEINCRYPTO report, Ripple CEO Brad Garlinghouse believes the US government is planning action against Tether, the biggest stablecoin issuer. He fears this could disrupt the cryptocurrency market.

This warning comes after reports of terrorist groups and sanctioned countries using Tether's USDT stablecoin to avoid US financial restrictions. The US Treasury Department has also expressed concerns about Russia using USDT to bypass sanctions. Additionally, a UN report linked USDT on the TRON blockchain to money laundering in online gambling.

Despite these issues, Tether maintains it follows compliance rules and works with law enforcement to stop illegal activities. They've frozen millions of dollars in tokens involved in unlawful acts. Tether's USDT remains the leading stablecoin by market value, with a large circulating supply and recent high profits.

Ripple to launch its own stablecoin

Despite the controversy surrounding Tether, Ripple announced its own stablecoin launch. They say it will contribute to their ecosystem and create a more diverse crypto landscape. No further details have been released, but the name may be revealed in June.

Tether defends its safety measures

Tether CEO Paolo Ardoino decided to publicly respond to the claims on 𝕏.

Source: 𝕏

Tether emphasizes its commitment to a safe global financial system, especially for unbanked communities in developing countries who rely on USDT. They highlight their efforts towards compliance, including:

• Following sanctions lists

• Having a trained internal investigation team

• Using Chainalysis software for monitoring

• Collaborating with law enforcement worldwide

• Blocking billions of dollars in suspicious transactions

• Working directly with agencies like the FBI and US Secret Service

Tether argues that unlike some competitors, their swift cooperation with law enforcement helps prevent criminals from moving funds.

Resources:

BEINCRYPTO

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