Tether Prepares for Full Audit as New U.S. Stablecoin Rules Approach
Tether Moves Toward Full Audit as U.S. Stablecoin Regulations Tighten
Tether, the issuer of the world’s largest stablecoin, is in active discussions with one of the Big Four accounting firms to conduct a third-party audit—a crucial step as regulatory scrutiny in the U.S. intensifies. CEO Paolo Ardoino confirmed that the company is prioritizing this audit to align with impending U.S. stablecoin regulations, which will require independent verification of financial reserves for firms seeking market legitimacy.
The urgency for transparency comes amid growing U.S. government interest in stablecoins’ potential to integrate into the mainstream financial system. Even former President Donald Trump has acknowledged stablecoins as a strategic tool to bolster the U.S. dollar’s global dominance. Ardoino believes that this high-level political support could finally compel major auditing firms to take Tether’s request seriously, overcoming long-standing industry skepticism.
However, Tether’s track record on transparency remains controversial. The company has repeatedly promised—but never delivered—a full, independent audit. While it publishes internal attestations and recently appointed a new CFO, critics argue these measures fall short of true financial disclosure. There is speculation that Tether may seek a limited audit focused only on its reserves rather than the comprehensive financial review expected under the proposed GENIUS Act, which sets strict requirements for stablecoin issuers.
The GENIUS Act: A Game-Changer for Stablecoin Oversight
If passed, the GENIUS Act would require stablecoin issuers to undergo regular external audits and hold reserves in secure assets, such as U.S. Treasury bonds. Tether claims to already meet this standard, reporting $33 billion in Treasury bond purchases last year. However, concerns arise due to its partnership with Cantor Fitzgerald, the financial firm that manages these assets.
This relationship has drawn scrutiny, especially following the appointment of Cantor Fitzgerald’s former CEO, Howard Lutnick, as U.S. Secretary of Commerce. Critics, including investor Jason Calacanis, argue that Tether’s deep financial and political ties demand stronger regulatory oversight. Calacanis even suggests that Tether should be barred from holding U.S. Treasuries until it undergoes a historical, multi-year audit proving its financial integrity.
Will Tether Deliver or Evade Scrutiny Again?
With billions in annual profits, Tether has the financial capability to fund a full audit. But the real question is whether it is willing to face the level of scrutiny regulators demand. Failure to comply could jeopardize its U.S. market access—a major setback despite Tether’s dominance in global crypto liquidity.
As the U.S. tightens stablecoin regulations, all eyes are on Tether. A successful audit could solidify its position as a legitimate, government-compliant entity. On the other hand, continued delays or a half-measure audit could reinforce long-standing doubts about the company’s financial structure.
The clock is ticking. Will Tether finally prove its financial stability, or will it continue to operate in regulatory limbo? The next few months could define the future of the world’s most widely used stablecoin.