Ripple CEO Brad Garlinghouse is under significant scrutiny following his remarks about Tether, particularly his assertion that “the U.S. government is going after Tether, that is clear to me.” These comments were made during the May 10 episode of the World Class podcast, where Garlinghouse also touched on the possibility of a future black swan event.

Tether CEO Paolo Ardoino responded sharply on social media, calling Garlinghouse “An uninformed CEO.” Similarly, Samson Mow, CEO of hyperbitcoinization firm Jan3, criticized Garlinghouse, suggesting he should “leave the attacking to the XRP bots.” Cointelegraph spoke with Mow to delve deeper into Garlinghouse’s possible motives, especially since Ripple is developing its own stablecoin.

Mow accused Garlinghouse of spreading fear, uncertainty, and doubt (FUD) about Tether, a tactic he claims has been used unsuccessfully by competitors for a decade. Mow pointed to Tether's substantial growth and its diversification into sectors like energy and artificial intelligence as evidence of its resilience. According to Mow, Garlinghouse targets both Bitcoin and Tether because they compete with Ripple's vision for XRP.

Further, Mow suggested that Ripple's historical attempts to position XRP as a form of money involved targeting Bitcoin, and now, with Ripple entering the stablecoin market, Tether is the new focus. Mow was skeptical of Ripple’s strategy, predicting that Ripple’s stablecoin would fail just as XRP did in competing with Bitcoin.

In response to the backlash, Garlinghouse clarified his statements on May 13 via social media, asserting that he wasn’t attacking Tether but rather highlighting the U.S. government’s intentions to exert more control over USD-backed stablecoin issuers. He emphasized Tether's importance to the ecosystem but maintained that its prominence makes it a likely target for government scrutiny.

Despite Garlinghouse's clarification, it did little to soften the blow of his initial remarks. Cointelegraph attempted to get further comments from Ripple, but a spokesperson indicated that Garlinghouse’s social media post was the final word on the matter. The broader context of Tether’s controversies, including accusations of inadequate auditing and market manipulation, remains a contentious topic in the crypto industry.

Adding to the drama, Ripple’s plans to launch its own stablecoin, RLUSD, were confirmed in April. Ripple’s chief technology officer, David Schwartz, noted the market’s capacity for more competitors, especially in the DeFi space. However, Garlinghouse’s comments about Tether have cast a shadow, inviting criticism and highlighting the competitive tensions within the stablecoin market. Mow’s critique underscored this, pointing out the irony in Garlinghouse’s statements given Ripple's own legal battles with the U.S. government over alleged securities violations.