Ripple CEO Brad Garlinghouse has raised concerns about the US government targeting Tether, the issuer of the largest stablecoin. In a recent podcast, Garlinghouse emphasized that potential action against Tether could disrupt the crypto space significantly. This comes amidst reports of terrorist organizations and sanctioned countries using USDT to evade financial restrictions.
The US Treasury Deputy Secretary, Adewale Adeyemo, highlighted Russia’s use of alternative payment methods like Tether’s USDT to bypass sanctions. Additionally, a UN report revealed the widespread use of cryptocurrencies, particularly USDT on the TRON blockchain, for money laundering in illicit online gambling.
Despite these issues, Tether has stressed its commitment to compliance and collaboration with law enforcement to combat illicit financial activities. The stablecoin maintains its position as the top stablecoin by market capitalization, with a circulating supply of around $110 billion and a historic net profit of $4.52 billion in the first quarter.
In light of the controversies surrounding Tether, Ripple has announced plans to introduce its stablecoin, aiming to contribute to the crypto landscape. While details about the asset are yet to be disclosed, Ripple’s CTO hinted at revealing the stablecoin’s name in June.