Tether USDT CEO bites back at Ripple XRP CEO, Brad Garlinghouse.
Photo By Stephen McCarthy/Sportsfile for Collision via Getty Images)
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Key Takeaways
Brad Garlinghouse has clarified his recent comments regarding Tether and the U.S. government.
Tether’s CEO issued a comprehensive response to, shedding light on USDT’s commitment to compliance and security.
Garlinghouse believes Tether is “hugely important” to the ecosystem.
Following a podcast appearance in which Ripple (XRP) boss Brad Garlingouse appears to be questioning Tether’s integrity, Tether’s CEO ardently refuted these claims, describing Garlinghouse as “uninformed.”
Now Garlinghouse wants to clear up what he claims is a gross misrepresentation of his point.
Tether is “Important”
Garlinghouse’s comments on Tether and the U.S. government “going after” them were exceedingly brief. But they did follow a brief conversation on “black swan events” such as FTX, which can bring an ecosystem down in a very unpredictable fashion.
This was seen as the first volley in what could have become a crypto infight between Ripple and Tether. Tether’s CEO quickly responded in defense of the firm’s ecosystem and integrity. Soon after, Garlinghouse took to X to clear the air.
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…
According to Garlinghouse, what he was getting at was the significance of USDT in the ecosystem, describing it as “hugely important”. Furthermore, given the U.S. government’s intentions to have greater control over USD-backed stablecoins. He writes:
“Tether, as the largest player, is in their line of sight.“
With that said and done, Ardoino is still yet to respond. However his initial response, albeit serious in tone, did give some insights into the operations of USDT.
Tether CEO Accuses Ripple Boss of Spreading USDT FUD
CEO Brad Garlinghouse recently claimed the U.S. was clearly “going after” the world’s leading stablecoin issuer.
Considering that Ripple is still under investigation by the U.S. Securities and Exchange Commission (SEC), and the fact that Ripple intends to launch its own stablecoin, Garlinghouse’s comments carry an air of hypocrisy.
Tether Addresses Garlinghouse
In a recent interview on the World Class podcast, Garlinghouse alluded to the U.S. government’s stance on Tether, hinting that regulatory scrutiny may be on the way.
More specifically, he was commenting on unpredictable industry “Black Swans” like FTX’s Sam Bankman-Fried (SBF) and Binance’s Changpeng “CZ” Zhao, when he then said:
“[…]the U.S. government is going after Tether, that is clear to me. I view Tether as a very important part of the ecosystem, and I don’t know how to predict the impact that will have on the rest of the ecosystem.”
Ripple’s intentions to launch its very own stablecoin make Garlinghouse’s, vague at best, statements seem a little hypocritical, at least that’s what Tether’s CEO thinks.
Tether Bites Back
Describing Garlinghouse as an “uninformed CEO”, Tether CEO Paolo Ardoino pulls no punches in addressing Garlinghouse’s short, brief, yet impactful statement.
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…
Taking to social media, Adoino provided a comprehensive breakdown of Tether’s commitment to legitimacy, ecosystem security, longevity, and regulatory compliance.
Ardoino highlights that USDT is the most used stablecoin on the market, spanning hundreds of millions of users based primarily in developing and emerging markets. With this in mind, he notes that USDT has maintained and grown this ecosystem, writing:
“USDT proved overtime to have strong price stability, highly liquid reserves, top tier custodians and profound compliance.“
He then goes on to list Tether’s many collaborations with the FBI and other U.S. agencies, as well as “124 law enforcement agencies across 40+ different countries”, freezing some $1.3 billion USDT used in “scams, hacks, ” and money laundering (ML).
A Miscommunication
What was previously thought to have been the beginning of a fresh crypto spat, has turned out to be somewhat of a miscommunication.
Based on his response, Garlinghouse feels his comments have been blown out of proportion. Given Ripple’s unfortunately intimate relationship with the U.S. SEC, he could have been offering a friendly heads-up to a fellow crypto-leader. But with the mention of Tether following Garlinghouse’s comments on black swan events, the context of his message seemingly became distorted.
Ardoino has since resumed posting to X, though is yet to reply to Garlingouse.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
