Tether's Audit Pursuit: A Step Towards US Regulation?
Recent reports suggest Tether CEO Paolo Ardoino is negotiating with Big Four accounting firms for a long-awaited third-party audit. However, community skepticism remains high due to a history of unfulfilled promises.
Is Tether Finally Getting Audited?
Tether, issuer of the world's largest stablecoin, aims for closer US government integration. President Trump's recent comments highlighted stablecoins' potential role in strengthening the dollar's global dominance. A third-party audit is crucial for this partnership.
Reuters reported that Tether is engaging with a Big Four firm (PwC, EY, Deloitte, or KPMG), although specifics remain undisclosed. Ardoino stated that securing an audit is a top priority, suggesting that the pressure from potential US regulations makes it now feasible.
“It’s our top priority. Now we are living in a landscape where it’s actually feasible. If the President of the United States says this is top priority for the US, Big Four auditing firms will have to listen,” Ardoino claimed.
Despite internal reports, a new CFO, and years of promises, Tether's lack of a past third-party audit fuels community doubt. Speculation suggests Tether may seek a reserve-only audit, while the Big Four might insist on a comprehensive audit. Ardoino's reference to Trump's statement hints at this as a potential motivator.
Considering Tether's $13 billion profit last year, the financial capacity to afford a Big Four audit seems undeniable. The need for external incentives raises questions.
Stablecoin Regulation: The Driving Force
Upcoming US stablecoin regulations, such as the proposed GENIUS Act, necessitate independent audits and specific reserve compositions (e.g., Treasury bonds). Without an audit, Tether's US operations face significant risk.
Tether's reported purchase of $33 billion in Treasury bonds last year is noteworthy, yet the fact that 99% is held by Cantor Fitzgerald, a firm with extensive ties to Tether, has raised concerns. This raises further questions about transparency and independence.
“Tether has a challenged reputation to say the least. It should be banned from buying US Treasuries until they pass a series of deep audits by US regulators — and that audit should go back to their inception. We’re taking a huge, unnecessary risk by letting this firm into our financial system,” Jason Calcanis claimed.
While Tether's political connections and Treasury bond holdings position it favorably for US partnerships, a successful audit is paramount. Failure to comply with upcoming regulations could severely impact Tether's presence in the US market.
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