Tether in Talks for Third-Party Audit to Meet U.S. Regulations
Tether is in discussions with a Big Four accounting firm for a third-party audit to comply with upcoming U.S. stablecoin regulations that mandate independent audits for issuers.
- CEO Paolo Ardoino stated that securing an audit is a top priority due to increased government interest in stablecoins.
- Former President Donald Trump has highlighted stablecoins as a means to enhance the U.S. dollar's global status.
- Community skepticism persists, as Tether has previously promised audits without fulfillment. Critics doubt the transparency of internal reports and suggest Tether may only pursue a limited audit focused on reserves.
- The proposed GENIUS Act would require external audits and secure asset reserves for stablecoin issuers. Tether claims $33 billion in Treasury assets but most are held by Cantor Fitzgerald.
- Concerns exist regarding Tether's ties to Cantor Fitzgerald and its former CEO, now U.S. Secretary of Commerce. Critics argue for stronger oversight before allowing Tether to hold U.S. Treasuries.
- Tether reported significant profits last year, indicating it could fund a full audit. However, doubts about its willingness to undergo scrutiny remain.
- Compliance with audit requirements is crucial for Tether's operations in the U.S. market and potential partnerships with government entities.