Brad Garlinghouse, CEO of Ripple, expressed concern that the U.S. government might take action against Tether, the issuer of the largest stablecoin by market capitalization, USDT. Garlinghouse shared his concerns during an episode of the World Class podcast with Chris Vasquez.

Garlinghouse emphasized that potential U.S. actions against Tether could significantly disrupt the cryptocurrency space.

These comments come amidst reports of USDT being used by terrorist groups and sanctioned countries to circumvent U.S. financial restrictions. In April, U.S. Deputy Treasury Secretary Wally Adeyemo testified before the Senate Banking Committee, highlighting Russia's increased use of Tether to mitigate the impact of economic sanctions.

A UN report also highlighted the widespread use of cryptocurrencies for money laundering, noting that USDT, issued on the TRON blockchain, is frequently used on illegal online gambling platforms.

In response to these challenges, Tether emphasizes its compliance with regulatory standards and collaborates with law enforcement to combat illegal financial activities, actively blocking addresses involved in such operations.

Despite these challenges, USDT continues to hold a leading position in the stablecoin sector, significantly outpacing its closest competitors, such as USDC and DAI. The market capitalization of the stablecoin exceeds $110 billion, with Tether's net income reaching $4.52 billion in the first quarter of 2024.