"U.S. government is after Tether"

According to Brad Garlinghouse, Tether (USDT) is being targeted by the U.S. government. A ban would have far-reaching consequences for the crypto sector.

The stablecoin operator Tether (USDT) is being targeted by the U.S. government, according to Brad Garlinghouse, CEO of Ripple. Garlinghouse explained this in a episode of the podcast "World Class" with Chris Vasquez.

According to him, the American action against USDT have serious implications for the crypto sector.

"The U.S. government is going after Tether. I've realized that. I see Tether as an important part of the ecosystem and I don't know what impact that would have on the rest of the ecosystem," the Ripple CEO said.

Just recently, there were allegations against Tether that the company cooperated in circumventing sanctions and the financing of terrorism.

However, Tether's boss, Paolo Ardoino, has so far fiercely defended himself against such accusations. He repeatedly refers to his company's "long-standing cooperation" with U.S. authorities.

From statements from the U.S. Treasury Department, however, reveals that Tether is a thorn in the side of the U.S. government despite all its cooperation.

Meanwhile Ripple itself now in the stablecoin sector. A US dollar cryptocurrency of Ripple will be launched this year. This would make Garlinghouse and Co. direct competitors to USDT.

With a market capitalization of more than USD 110 billion, Tether is currently the largest provider of stablecoins. A ban on USDT stablecoin would presumably have far-reaching implications for liquidity in the crypto sector, but would pave the way for other providers.