Tether CEO Paolo Ardoino has publicly criticized Ripple CEO Brad Garlinghouse for comments made about Tether's regulatory scrutiny in the United States. Garlinghouse's remarks were made during a podcast where he suggested that U.S. government scrutiny of Tether was increasing. Ardoino quickly responded on social media, rebuffing Garlinghouse's claims.

In a podcast conversation with Chris Vasquez on "World Class," Garlinghouse warned about potential regulatory challenges for Tether, the largest stablecoin issuer. He emphasized Tether's significant role in the cryptocurrency ecosystem and suggested that the U.S. government was targeting Tether, stating, "The US government is going after Tether. That is clear to me."

Garlinghouse, whose company Ripple is under investigation by the SEC, hinted at potential regulatory troubles for Tether, given its $110.8 billion market cap's impact on the broader cryptocurrency ecosystem. In response, Ardoino labeled Garlinghouse an "uninformed CEO" and vigorously defended Tether's compliance and operational safety.

Ardoino's post detailed Tether's commitment to transparency and its ongoing cooperation with global law enforcement agencies, including partnerships with blockchain analytics firm Chainalysis. He emphasized Tether's high liquidity reserves, stringent compliance measures, and significant efforts to block funds tied to illicit activities. Ardoino stated, "Tether blocked more than $1.3 billion since inception, mostly related to scams, hacks, and money laundering. Approximately $1.6 million is related to terrorist financing."

Ardoino also highlighted Tether's proactive engagement with law enforcement worldwide, blocking over $1.3 billion linked to scams and hacks. He accused mainstream media of spreading sensationalistic narratives about cryptocurrencies, particularly stablecoins like USDT, which are primarily used in emerging markets as primary financial resources.

Meanwhile, Ripple continues to face a significant legal battle with the SEC over its sales of XRP, which the SEC alleges were unregistered securities offerings. After a lengthy court battle, the SEC is pushing for harsh penalties, including a court order to prevent future violations and significant financial fines, citing Ripple's ongoing sales and past behavior as reasons for strict oversight to deter future violations.