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📌 According to Garlinghouse, the U.S. may take action against companies issuing stablecoins.

Ripple CEO Brad Garlinghouse claims that the US government is monitoring Tether . Tether

– Ripple CEO Brad Garlinghouse claims that the US government is monitoring Tether

Brad Garlinghouse, CEO of Ripple, has expressed concern that the US government is keeping a close eye on Tether, the largest issuer of stablecoins.

Garlinghouse warned that potential regulatory action against Tether could have a significant impact on the cryptocurrency ecosystem.

However, Ripple plans to enter the stablecoin market by introducing its own fully-collateralized digital asset at an unspecified time.

Brad Garlinghouse, CEO of Ripple, warned that the U.S. government is targeting Tether, the largest issuer of stablecoins by market capitalization.

Garlinghouse made the disclosure on a new episode of the World Class podcast with Chris Vasquez.

According to Garlinghouse, potential U.S. action against stablecoin issuers could cause major upheaval in the cryptocurrency space.

The U.S. government will go after Tether. This is obvious. I view Tether as a very important part of the ecosystem and I don’t know how to predict how this will affect the rest of the ecosystem,” Garlinghouse said.”

The statement comes amid reports that terrorist organizations and sanctioned countries are using USDT to circumvent U.S. financial regulations. In April, U.S. Deputy Treasury Secretary Adewale Adeyemo testified before the Senate Banking Committee that Russia is using alternative payment methods, such as Tether’s USDT, to circumvent economic sanctions. He emphasized that Russia is increasingly using alternative payment methods, such as USDT from Tether, to circumvent economic sanctions.

We see Russia increasingly relying on alternative payment mechanisms, including a peg to stablecoins, to circumvent our sanctions and maintain funding for its military machine.”

At the same time, according to a UN report, cryptocurrencies are widely used for money laundering.

Despite these concerns, Tether emphasizes its commitment to compliance standards and working with law enforcement to combat illicit financial activity. The company is taking proactive measures, including freezing addresses that hold large amounts of tokens involved in illegal activity.

Tether’s USDT maintains its leadership in market capitalization among stablecoins, with a trading volume of about $110 billion. Notably, the company posted a historic net profit of US$4.52 billion in the first quarter.

Despite the controversy surrounding the largest issuer of stablecoins, Ripple has entered the sector. Last month, the company announced its intention to issue its own stackablecoin.

According to Ripple representatives, “Ripple’s entry into the stackablecoin market is not just an innovation, but a contribution to the XRPL ecosystem to make the cryptocurrency landscape stronger and more diverse.”

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