Are American authorities going to attack Tether?

American authorities are closely monitoring the development of the Tether project, says Ripple CEO Brad Garlinghouse. He also noted that the likely actions of regulators could have significant consequences for the crypto industry.

“The US government is going after Tether, like that is clear to me. I view Tether as a very important part of the ecosystem and I don’t know how to predict the impact that will have on the rest of the ecosystem,” said the Ripple executive.

In response to his statement, Tether pointed to efforts to comply with American law. The company’s CEO, Paolo Ardoino, said that “ Tether cooperates directly with law enforcement agencies, while other stablecoins, although they claim to be “more compliant” they require a judge order, allowing hackers, scammers and criminals a long time to move funds around.”

Ardoino believes that Garlinghouse’s statement is a plan by a competitor who is promoting its own stablecoin in the American market, where Tether controls about 60%.

According to Tether’s CEO, the Ripple executive is spreading rumors at a critical time when US authorities are tightening their control over the cryptocurrency industry and the circulation of stable coins, including USDT.

“While I have revealed in many interviews the following information, most mainstream media newspapers evidently refuse to report such data. Unfortunately, the narrative that they are most interested in spreading is sensationalistic against the usage of stablecoins and cryptocurrencies across the world, likely to protect the old guard of the financial establishment,” Ardoino noted.

Earlier, JPMorgan announced the growing influence of Tether. Investment bank analysts considered that “Tether is at risk due to a lack of regulatory compliance and transparency.”

Experts believe that stablecoin issuers that follow the rules will benefit from increased regulatory scrutiny and will be able to increase their market share.

“I’m happy to read that JPMorgan acknowledges the importance of Tether and the stablecoin technology created by our company,” Tether CEO Paolo Ardoino told The Block. “But it seems to me a bit hypocritical the talk about concentration coming from JPMorgan, the biggest bank in the world,” Tether CEO Paolo Ardoino previously commented.