The CEO of Ripple warned that the US government is targeting Tether

Ripple CEO Brad Garlinghouse has warned that the US government is targeting Tether, the largest stablecoin by market capitalization.

Garlinghouse revealed this vision in a new episode of The World Class Podcast with Chris Vasquez.

The US government is going after Tether.

According to Garlinghouse, the US action against the stablecoin issuer could trigger significant disruption in the crypto space.

“The US government is going after Tether. This is obvious to me. “I see Tether as a very important part of the ecosystem, and I don't know how to predict the impact it will have on the rest of the ecosystem,” Garlinghouse said.

This statement comes amid revelations about the exploitation of the US dollar by terrorist organizations and sanctions to evade US financial sanctions. In April, US Deputy Treasury Secretary Adewale Adeyemo testified before the Senate Banking Committee and highlighted alternative payment methods, such as Tether USDT, to counter Russia's growing economic sanctions.

“We have seen Russia turn to alternative payment methods, including the stablecoin Tether, as it attempts to reverse our sanctions and finance its weapons,” Adeyemo wrote.

Similarly, a UN report hinted at widespread use of cryptocurrencies for money laundering, with USDT emerging as a popular vehicle on the TRON blockchain, particularly in illegal online gambling platforms.

Read more: Guide to the Best Stablecoins in 2024

Despite these concerns, Tether emphasizes compliance standards and cooperation with law enforcement to fight illegal financial activities. The company has taken proactive measures against illegal activity, including freezing addresses that hold large amounts of tokens.

Tether USDT maintains its position as the leading stablecoin by market capitalization, boasting a supply of nearly $110 billion. Specifically, the company posted a historic net profit of $4.52 billion in the first quarter.

Yet, despite the controversy surrounding the large stable coin issuers, Ripple has entered the sector. Last month, the company announced its intention to introduce the stable coin.

“Ripple's move to a stablecoin is not just about innovation; it's about contributing to the XRPL ecosystem and creating a stronger and more diverse crypto landscape,” Ripple said.

Read more: Stablecoin regulations around the world

After the announcement, the company did not provide further details about the property. However, Ripple CTO David Schwartz hinted that the name of the stablecoin could be revealed in June.