The chief executive officer of Ripple, Brad Garlinghouse, is worried that the US government is looking into the biggest stablecoin issuer, Tether.
The chief executive officer of Ripple, Brad Garlinghouse, has issued a warning that the issuer of the most valuable stablecoin by market capitalization, Tether, is the focus of US government targeting.
In a recent episode of Garlinghouse and Chris Vasquez’s World Class podcast, Garlinghouse revealed this discovery.
Garlinghouse claims that a major upheaval in the cryptocurrency market would occur if the United States takes action against the stablecoin provider.
According to Garlinghouse, “The United States government is pursuing Tether. Sure, I can see that. I don’t know how to forecast the effect it would have on the rest of the ecosystem. Tether is a crucial component of the ecosystem.”
New evidence suggests that sanctioned nations and terrorist organizations have been using USDT to circumvent US financial sanctions, leading to this claim. While testifying before the Senate Banking Committee in April, US Treasury Deputy Secretary Adewale Adeyemo brought attention to the fact that Russia is increasingly utilizing alternative payment mechanisms like Tether’s USDT to evade economic sanctions.
Adeyemo described Russia’s growing use of stablecoin tether and other alternative payment channels as an attempt to evade sanctions and fund the country’s military spending.
Coincidentally, a United Nations investigation illuminated the extensive use of cryptocurrencies for money laundering, with USDT on the TRON blockchain standing out as a significant vehicle, especially inside illegal online gaming sites.
Notwithstanding these reservations, Tether stresses its cooperation with law enforcement in the fight against illegal financial activity and its commitment to compliance standards. The business has frozen addresses that have a large quantity of its tokens linked to illegal activity as part of its preventative actions.
There are almost $110 billion worth of Tether’s USDT circulating, which keeps it at the top of the stablecoin market by market capitalization. Particularly noteworthy is the fact that the first quarter net profit was $4.52 billion, a record for the corporation.
Even though Ripple is the biggest stablecoin issuer, it has joined the industry anyhow. The business revealed its plans to launch the stablecoin last month.
According to Ripple, their entry into stablecoins isn’t only an innovation; it’s also an opportunity to strengthen the XRPL ecosystem and pave the way for a more robust and varied crypto environment.
The business has been tight-lipped on the asset since the announcement. June may see the announcement of the stablecoin’s name, however, according to Ripple CTO David Schwartz.
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