Mounting regulatory scrutiny is pushing stablecoin giant Tether towards engaging a Big Four firm for a much-awaited audit.
As stablecoin regulations become increasingly stringent, particularly in the United States, Tether, the issuer of the world’s leading stablecoin, is reportedly engaging in discussions with a Big Four accounting firm to conduct a comprehensive third-party audit.
Tether in Talks for Big Four Audit
According to CEO Paolo Ardoino, these discussions are aimed at preemptively fulfilling expected requirements under forthcoming U.S. regulations governing stablecoins.
These anticipated rules are expected to mandate independent audits for stablecoin issuers seeking to operate within the American financial market.
Ardoino has stated that obtaining a formal audit is now a paramount objective for Tether, particularly in light of the growing interest from U.S. governmental bodies in incorporating stablecoins more deeply into the existing financial infrastructure.
His statements follow recent remarks from President Donald Trump, who advocated for stablecoins as a mechanism to reinforce the global prominence of the U.S. dollar.
Regulatory Pressure Mounts for Stablecoin Transparency
Ardoino implied that this high-level endorsement might incentivize major auditing firms to give greater consideration to Tether’s audit request.
Despite these developments, significant skepticism persists within the crypto community regarding Tether’s commitment to a full audit.
While Tether has made similar assurances in the past, a comprehensive independent audit has never materialized.
The company does release periodic internal reports, and a new Chief Financial Officer has been appointed; however, critics argue these steps remain insufficient to achieve genuine transparency.
Concerns exist that Tether may seek a limited audit, focusing solely on its reserve holdings, whereas the proposed GENIUS Act is expected to mandate more thorough audits encompassing all aspects of stablecoin operations.
Competition and Regulatory Navigation Remain Key for U.S. Market Entry
The GENIUS Act, if enacted, would require stablecoin-issuing entities to undergo regular external audits and to maintain reserves composed of highly liquid and secure assets such as U.S. Treasury bonds.
Tether asserts that it already holds a substantial portion of its reserves in such assets, declaring $33 billion in Treasury purchases in the preceding year.
Notably, a significant portion of these Treasury holdings are managed by Cantor Fitzgerald, a financial institution with close ties to Tether.
This relationship has prompted scrutiny, particularly given that Cantor Fitzgerald’s former CEO, Howard Lutnick, has recently assumed the position of U.S. Secretary of Commerce.
Prominent critics like Jason Calacanis contend that Tether’s established reputation and political connections necessitate enhanced regulatory scrutiny.
Calcanis maintains that Tether should be prohibited from holding U.S. Treasury bonds until it completes a thorough audit, encompassing its entire operational history from its inception.
Also Read: Tether’s co-founder develops yield-bearing stablecoin
