Brad Garlinghouse Warns of Potential Government Actions Against Tether
Brad Garlinghouse, the head of the fintech company Ripple, has accused US authorities of targeting Tether, one of the largest issuers of stablecoins. Tether issues USDT, which is pegged to the US dollar and ranks third in terms of market capitalization among cryptocurrencies, with a total volume of over $111.2 billion. Garlinghouse warned that potential government actions against Tether could have devastating consequences for the entire cryptocurrency ecosystem.
US Authorities Allege Tether Involvement in Sanctions Violations
His statement came in response to recent allegations against Tether by US authorities. In April, US Deputy Treasury Secretary Wally Adeyemo stated in his testimony before the Senate Banking Committee that Russia allegedly uses Tether to bypass economic sanctions. Adeyemo claimed that the stablecoin Tether is being used to finance Russia’s military activities.
Tether Faces Allegations of Illegal Transactions
Tether has already faced allegations of enabling illegal transactions. Last year, the US Senate linked Tether to financing the terrorist organization Hamas, and the UN named USDT as one of the popular tools for money laundering in Southeast Asia.
Possible Ban on Foreign Stablecoin Issuers in the US
Last year, Adeyemo also hinted at the possibility of banning foreign stablecoin issuers in the US as a measure to combat sanctions violations and money laundering. Tether, registered in the British Virgin Islands, could be subject to potential restrictions. Garlinghouse is concerned that such measures could not only undermine Tether’s reputation but also have a negative impact on the entire crypto industry.
