Ripple CEO Brad Garlinghouse recently claimed that the US government was clearly targeting Tether, one of the world's largest stablecoin platforms. This assertion was made on a podcast show, where Garlinghouse also predicted that the cryptocurrency market could be hit by another "black swan" event similar to the FTX bankruptcy.
A clear target for the government
Garlinghouse stated that the US government was "clearly" targeting Tether, without providing any details as to why. He also stressed that Tether was an important part of the cryptocurrency ecosystem, making its future "interesting to follow". Garlinghouse also stressed the importance of monitoring Tether's future evolution, given its crucial role in the cryptocurrency ecosystem.
Market implications
The implications for the cryptocurrency market are unknown, but Garlinghouse predicted that the US government could take regulatory action against Tether, which could have a significant impact on the market. He also pointed out that Ripple, the company he heads, was planning to launch its own stablecoin, backed by dollar deposits and short-term government securities.
Tether review
Tether has been criticized for its limited transparency regarding its backing reserves, leading to suspicions of fraud and market manipulation. The US government has also been conducting an investigation into Tether, which has been transferred to Manhattan Attorney General Damian Williams. This investigation raises questions about Tether's regulatory future, which could have a significant impact on the entire cryptocurrency ecosystem.
