Tether, the company behind the largest stablecoin, is in talks with a Big Four accounting firm for a third-party audit. CEO Paolo Ardoino confirmed that these discussions are to meet new U.S. stablecoin regulations. These regulations will require independent audits for stablecoin issuers in the U.S. market.
Ardoino stated that getting an audit is a top priority. There is growing interest from the U.S. government in stablecoins, especially after former President Donald Trump mentioned them as a way to strengthen the U.S. dollar. Ardoino believes this support could encourage major auditing firms to take Tether’s request seriously.
However, many in the community remain skeptical. Tether has made similar promises before but has not completed a full independent audit. While the company publishes internal reports and has a new CFO, critics say these actions do not provide true transparency. Some think Tether might only seek a limited audit focused on its reserves. But the proposed GENIUS Act requires full audits for stablecoin issuers.
The GENIUS Act states that stablecoin companies must have external audits and keep reserves in secure assets like U.S. Treasury bonds. Tether claims it holds a significant amount in such assets, reporting $33 billion in Treasury purchases last year. However, most of these assets are with Cantor Fitzgerald, a firm closely linked to Tether.
This connection raises concerns, especially since Cantor Fitzgerald’s former CEO is now the U.S. Secretary of Commerce. Critics argue that Tether’s ties to politics call for stronger oversight. They believe Tether should not hold U.S. Treasuries until it passes a thorough audit of its operations.
Tether made large profits last year, indicating it can afford a full audit. Yet, doubts linger about its willingness to face the scrutiny needed. Without compliance, Tether’s ability to operate in the U.S. could be at risk. The crypto community is closely watching to see if Tether will fulfill its audit promise, as this will be vital for its future in the regulated U.S. market.
