tl;dr
Ripple CEO Brad Garlinghouse warns of potential US government action against Tether, the largest stablecoin issuer. He anticipates significant disruption in the crypto space and cites concerns about Tether's use by terrorist organizations and sanctioned countries. Despite controversies, Tether empha...
Ripple CEO Brad Garlinghouse has issued a warning about potential US government action targeting Tether, the largest stablecoin issuer. He anticipates significant disruption in the crypto space due to concerns about Tether's use by terrorist organizations and sanctioned countries.
In April, US Treasury Deputy Secretary, Adewale Adeyemo, testified before the Senate Banking Committee, highlighting Russia's increasing use of alternative payment methods like Tether's USDT to bypass economic sanctions. Additionally, a UN report revealed widespread use of cryptocurrencies for money laundering, with Tether's USDT on the TRON blockchain being a prominent vehicle, particularly in illicit online gambling platforms.
Despite these concerns, Tether emphasizes its compliance standards and collaboration with law enforcement to combat illicit financial activities. The company has taken proactive measures, including freezing addresses holding a substantial amount of its tokens involved in unlawful activities, maintaining its position as the leading stablecoin by market capitalization with a circulating supply of approximately $110 billion and a historic net profit of $4.52 billion in the first quarter.
Meanwhile, Ripple has announced plans to introduce its own stablecoin, aiming to contribute to the crypto ecosystem. Ripple's CTO hinted at a possible name reveal in June, signaling the company's move into the stablecoin sector as a strategic step for the XRPL ecosystem and a more diverse crypto landscape.
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