Tether Challenges Ripple CEO’s Comments on US Targeting USDT: A Battle of Stablecoins

Tether, a popular stablecoin issuer, has recently found itself in the midst of a controversy with Ripple CEO Brad Garlinghouse over comments made regarding the US government’s alleged targeting of Tether’s USDT. The dispute began when Garlinghouse stated during an appearance on The World Class podcast that he believed the US government was “going after Tether.” In response, Tether CEO Paolo Ardoino took to social media to challenge Garlinghouse’s remarks, accusing him of spreading fear about USDT with ulterior motives.

The tension between the two companies stems from Ripple’s upcoming stablecoin offering, which is set to compete with Tether’s USDT when it launches in July. The digital asset market has been grappling with unclear regulation from the US Securities and Exchange Commission (SEC) for several years, leading to a slew of lawsuits and regulatory uncertainty. Ripple itself has been embroiled in a legal battle with the SEC since 2020, with its native token XRP still under scrutiny.

Ardoino defended Tether’s USDT, emphasizing the steps the company has taken to ensure the safety and regulatory compliance of its ecosystem. He highlighted Tether’s collaboration with law enforcement agencies across multiple countries as evidence of its commitment to regulatory standards. The CEO also criticized Garlinghouse for his comments, calling him an “uniformed CEO” and questioning his motives given Ripple’s own regulatory challenges and upcoming stablecoin launch.

The ongoing disagreement between Tether and Ripple reflects the broader regulatory challenges facing digital asset companies in the US. As the SEC continues its enforcement-focused approach to regulation, companies like Tether and Ripple are left navigating a complex and uncertain regulatory landscape. The coming months will be crucial in determining the outcome of this dispute and the future of stablecoins in the digital asset market.