Tether CEO Dismisses SEC Probe Rumors, Calls Them Malicious FUD

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As an experienced financial analyst, I believe that Garlinghouse’s comments about Tether being under investigation by US authorities could potentially create unnecessary fear and uncertainty in the crypto market. While it is essential for CEOs to be transparent about regulatory investigations, spreading such information without proper context or verification can lead to FUD among investors.

As a analyst, I’d rephrase it this way: “Paulo Ardoino, CEO of Tether, has criticized Brad Garlinghouse of Ripple for his remarks regarding potential enforcement actions against USDT. In Ardoino’s opinion, Garlinghouse was deliberately creating fear, uncertainty, and doubt (FUD) in the cryptocurrency market with these comments.”

Ripple has plans to launch its own stablecoin product in the near future. 

Ripple CEO Claims Authorities Going After Tether  

As a researcher studying the cryptocurrency market, I’ve noticed that Tether has managed to establish a strong presence in the industry due to its USDT stablecoin. USDT currently leads all other stablecoins in trading volume and market capitalization. However, Tether’s dominance has not come without controversy, as there have been ongoing concerns about the sufficiency of their reserves to back up the number of tokens they’ve issued.

As a financial analyst, I can confidently state that the US government’s scrutiny of Tether is unmistakable. From my perspective, Tether plays a pivotal role in the cryptocurrency market landscape.

Ardoino Slams Comments 

In response to Garlinghouse’s accusations, Ardoino countered by labeling them as unwarranted fear-mongering from an “unenlightened CEO” whose firm is currently embroiled in a significant legal dispute with the US Securities and Exchange Commission. Ardoino emphasized that Tether’s status as the leading stablecoin was merited due to its robust history, support from reputable custodians, and stringent compliance procedures. These measures encompassed adherence to OFAC sanctions lists, surveillance of blockchain activity, and cooperation with law enforcement to combat illicit activities.

Tether’s Compliance Efforts 

Ardoino addressed concerns about the safety of the USDT ecosystem, assuring that Tether’s stablecoin and associated products adhered to the sanctions lists published by the US Office of Foreign Assets Control. Notably, Tether’s partnership with law enforcement agencies worldwide resulted in the seizure of approximately $1.3 billion in illicit cryptocurrencies and over 339 wallets linked to unlawful financial activities. In contrast to other stablecoin issuers, Ardoino emphasized Tether’s proactive engagement with regulators.

According to the head of Tether, our primary objective at Tether is to create a secure global financial system that can be accessed by everyone in our community. For stablecoins to gain widespread acceptance, there are several essential elements they must possess. USDT, in particular, has demonstrated strong price consistency, easily accessible reserves, reputable custodians, and robust compliance throughout its tenure.

During the year 2024, Ripple intends to introduce a US Dollar stablecoin. According to their chief technology officer’s declaration, this digital currency will be secured by dollars in reserve, short-term US government securities, and other liquid assets.

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2024-05-14 12:03