- Tether is seeking its first full audit from a Big Four accounting firm to enhance transparency amid increasing regulatory pressures in Europe and the US.
- CEO Paolo Ardoino emphasizes that competitors aim to undermine Tether, while new regulations like the GENIUS Act could reshape the stablecoin landscape.
Tether, the issuer of the world’s largest stablecoin (USDT), is taking a significant step toward transparency by actively seeking its first full audit from one of the Big Four accounting firms—KPMG, PwC, Deloitte, or EY. This move comes amid increasing regulatory pressure and growing concerns over stablecoin compliance and reserve backing.
A New Era for Tether?
Tether’s CEO, Paolo Ardoino, has emphasized that transparency and compliance are now top priorities for the company. Speaking on the matter, he stated, “If the President of the US says this is a top priority for the US, Big Four auditing firms will have to listen, so we are very happy with that.” While he has yet to specify which firm will conduct the audit, his remarks suggest that Tether is serious about improving its credibility.
For years, Tether has faced scrutiny regarding its reserve backing and financial stability. Many in the crypto industry have questioned whether USDT is fully backed by assets as claimed. A full audit by a major accounting firm could finally provide clarity and ease investor concerns.
Regulatory Pressures in Europe and the US
Tether’s push for an audit is partly driven by mounting regulatory challenges. In Europe, the recently introduced Markets in Crypto-Assets (MiCA) framework demands that stablecoin issuers register with local regulators and meet strict compliance standards. The lack of necessary licenses has already led major exchanges like Crypto.com and Coinbase to delist USDT for European users.
A Tether spokesperson expressed disappointment over these developments, stating, “It is disappointing to see the rushed actions brought on by statements which do little to clarify the basis for such moves.” The company argues that the regulatory changes could pose risks to investors in the EU.
Meanwhile, in the US, Congress is debating new stablecoin legislation under the proposed GENIUS Act. If passed, the law would require stablecoin issuers to undergo regular audits and hold reserves in conservative assets such as Treasury bonds. Non-compliant issuers could face exclusion from the US market, further increasing pressure on Tether to comply.
Competition and Allegations of Industry Sabotage
Beyond regulatory concerns, Ardoino has also claimed that competitors are working to undermine Tether’s dominance in the stablecoin market. According to him, rival firms have a singular focus: “Kill Tether.” He argues that behind closed doors, business and political meetings are centered around strategies to diminish Tether’s influence.
While these claims may seem extreme, they highlight the intense competition in the stablecoin industry. With new regulatory frameworks emerging and rival projects gaining ground, Tether’s move toward securing a Big Four audit could be its best chance to maintain its leadership in the market.
Will an Audit Be Enough?
A full audit by a major accounting firm would undoubtedly be a milestone for Tether, potentially restoring trust among investors and regulators. However, given the fast-changing regulatory environment, an audit alone may not be enough to secure USDT’s long-term position. Tether will need to continue adapting to evolving legal standards while addressing concerns raised by both regulators and competitors.
Only time will tell whether this audit will mark a turning point for Tether or if the company will continue to face mounting regulatory and competitive challenges. For now, all eyes are on which Big Four firm will take on the task of auditing the world’s most widely used stablecoin.
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