Tether CEO counters Ripple CEO’s claims on USDT stability and regulatory compliance.
USDT stands firm with its robust infrastructure, liquidity, and commitment to compliance.
The debate underscores the evolving landscape of stablecoin regulation and its implications.
CEO of Tether, Paolo Ardoino, recently took to social media platform X to spotlight statements about USDT made by Ripple CEO Brad Garlinghouse in an interview, calling Garlinghouse a ‘CEO uninformed’ amidst the US Securities and Exchange Commission (SEC) investigation into his company.
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
As previously reported, Garlinghouse said in an interview that US authorities were targeting USDT and seeking to crack down on stablecoins, while adding that he could not predict the impact on the digital asset sector.
Ardoino stated in a post on X that Garlinghouse was spreading fear about USDT and emphasized that his company was seeking to launch a competitive stablecoin. He also noted that USDT has proven to have strong price stability, highly liquid reserves, top-tier custodianship and deep compliance.
Ardoino then highlighted the advantages of USDT, emphasizing that Tether plays an important role in providing financial services to unbanked communities in developing regions, areas that are often overlooked by traditional financial institutions. On the other hand, Tether has been planning expansion beyond the stablecoin business, recently announcing four new divisions.
Ardoino also emphasized that Tether adheres to strict standards of transparency and regulatory compliance, as evidenced by its compliance with OFAC/SDN listings, collaboration with Chainalysis, and extensive cooperation with international law enforcement to detect and prevent illegal activity, thereby strengthening the security of its ecosystem.
I wasn’t attacking Tether…the next words out of my mouth during the podcast were that I view Tether as a hugely important part of the ecosystem. My point was that the US govt has clearly indicated they want more control over USD-backed stablecoin issuers, and thus, Tether, as…
— Brad Garlinghouse (@bgarlinghouse) May 13, 2024
Responding to the Tether CEO and spreading fear about USDT, Garlinghouse explained his true intentions on X, stating, he is not attacking Tether. Garlinghouse clarified that his remarks weren’t intended as an assault on Tether but rather as a reflection on the regulatory scrutiny directed towards prominent stablecoin issuers such as Tether.
Garlinghouse elucidates that the crux lies in the evident inclination of the US government towards exerting greater control over USD-backed stablecoin issuers, thereby placing Tether, as the foremost entity, squarely in their target sights.
The impending regulation of USDT offers a chance to foster transparency and advancement in the cryptocurrency sector. As oversight becomes more stringent, Tether and other stablecoin creators stand ready to showcase their dedication to regulatory compliance, bolstering confidence and steadiness in the community.
Through proactive steps and collaborative efforts across the industry, USDT regulation has the potential to create a safer and more accessible environment for digital assets, encouraging innovation and instilling trust among investors.
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The post USDT Regulation Showdown: Tether CEO vs Ripple CEO – Whose Side Are You On? appeared first on Crypto News Land.