'Ripple CEO Under Fire for Remarks on Tether; Firm Announces New Stablecoin, RLUSD'
Summary:
Ripple CEO Brad Garlinghouse is facing criticism for his comments about a possible U.S. government crackdown on rival cryptocurrency, Tether. In response to the backlash, Garlinghouse clarified his statements, insisting he only highlighted the U.S government's increasing scrutiny of USD-backed stablecoins, with Tether being the largest issuer. Ripple CTO, David Schwartz, also announced plans to introduce its stablecoin, RLUSD, as the cryptocurrency market does not necessarily run on a winner-takes-all model.
Brad Garlinghouse, Ripple's CEO, is under fire following his remarks on Tether, implying a likely government crackdown on the cryptocurrency. His statements aired on the May 10th episode of the World Class podcast, during a discussion about possible future global financial disruptions. Tether's CEO, Paolo Ardoino, referred to Garlinghouse as an uninformed leader, and Samson Mow of Jan3 urged him to step back, allowing Ripple's automated programs to take over. In an interview conducted by Cointelegraph, Mow explained Garlinghouse's focus on Tether and similarly, Bitcoin, given their competition with Ripple's own developments.
Assessing Garlinghouse's strategy, Mow said he was peddling unfounded fears and uncertainty about Tether, a familiar tactic among rivalries. He highlighted Tether's impressive track record and expansion into other sectors such as energy and AI. Mow further observed that Bitcoin and Tether were previously and presently threatened by Ripple's aspirations, respectively as a global cryptocurrency and a regulator of stablecoins. He concluded with a harsh prediction of Ripple's failure in both ventures.
Garlinghouse, in response to the backlash, clarified his remarks, maintaining his view of Tether as highly valuable in the cryptocurrency ecosystem. He argued that he intended to highlight the U.S government's increasing interest in controlling USD-backed stablecoin issuers, implying that Tether is inevitably under scrutiny. Ripple was contacted for further comment, but a firm's spokesperson confirmed Garlinghouse's remarks as the prevailing standpoint.
Analysts contend that Tether's complex history of disputes and accusations boils down to claims of inadequate auditing, market manipulation tendencies, issues of compliance, and its expanding influence on a potential financial crisis. Critics like Amy Castor and David Gerard anticipate Tether encountering legal and compliance hurdles. In contrast, Tether's Ardoino acknowledges the company's ongoing collaboration with law enforcement agencies and regulators, refuting claims of possible legal confrontation.
As Ripple revealed plans to introduce its stablecoin, RLUSD, it chose not to shy away from competition. Ripple's chief technology officer, David Schwartz, deemed the market vast enough to accommodate another contender. Garlinghouse's commentary nevertheless elicited skepticism about Tether, despite his reassurances of neutrality. In response to Garlinghouse's allegations, Mow critiqued Ripple for its impending $2.5 billion legal fines for selling unregistered securities. Tether, however, has not responded to inquiries for comment.
Published At
5/24/2024 5:11:00 PM
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