Ripple against the U.S government: Will USDT sink?

In a crypto sector that is boiling with activity, a high-stakes confrontation is now raging. On one side, Ripple points out the threat posed by American authorities on Tether, the issuer of the popular stablecoin USDT. On the other side, the firm in question responds by criticizing the dubious motivations of its accuser. A high-level power struggle that could well provoke a devastating earthquake.

Ripple sounds the alarm on the anti-Tether threat

The bombshell was recently dropped by Brad Garlinghouse, CEO of Ripple, during a widely followed podcast. According to the executive, “it is clear” that the US government is now targeting Tether, the issuer of the world’s leading stablecoin, USDT.

This warning is of the utmost gravity at a time when the entire ecosystem fears the emergence of a new “black swan” with devastating potential, following the spectacular implosion of FTX at the end of 2022. And Tether, given its considerable weight on the crypto markets, would be at the top of the list of potential targets according to Ripple.

True, Brad Garlinghouse did not back up his claims with any concrete evidence. His speech nonetheless resonates powerfully within a crypto community that is once again on high alert.

Tether denounces anti-competitive objectives!

What is now established is that Ripple aims to launch its own dollar-backed stablecoin quite soon. A new digital currency that would directly compete with the Tether giant in its strategic core market.

Therefore, could the thunderous accusations made by Brad Garlinghouse be designed to destabilize an upcoming major rival in this particularly lucrative sector in advance? It’s a self-serving maneuver that the Tether company obviously does not fail to denounce vigorously.

In a scathing rebuttal, it has multiplied conciliatory gestures towards regulators. Tether has particularly emphasized that it now publishes quarterly audits on its reserves backing USDT. It also reminded that its cooperation with American authorities has led to the freezing of nearly $640 million in illicit assets over the past years.

In this struggle that has the appearance of a regulatory takeover, it’s hard to determine who will emerge victorious between Tether and Ripple. But one thing is for sure: the future of the USDT behemoth will be absolutely crucial in the upcoming evolution of cryptocurrencies. One thing is certain: we have most definitely not finished being shaken by the turmoil caused by this confrontation that has the air of a battle lined up for the supremacy of stablecoins!