Tether Plans Audit Ahead of U.S. Stablecoin Rules

Tether, the company behind the world’s largest stablecoin, is reportedly in talks with one of the Big Four accounting firms to carry out a third-party audit. CEO Paolo Ardoino confirmed that discussions are ongoing, aiming to meet requirements expected under upcoming U.S. stablecoin regulations. These regulations would mandate independent audits as a condition for stablecoin issuers looking to operate in the American market.

Ardoino emphasized that securing an audit is now a top priority for the company, especially with rising interest from the U.S. government in integrating stablecoins into the financial system. His comments follow a recent statement from former President Donald Trump, who spoke about stablecoins as a way to strengthen the U.S. dollar's global role. Ardoino suggested that this high-level support could push major auditing firms to take Tether’s request more seriously.

Despite this, community skepticism remains high. Tether has made similar promises in the past but has never followed through with a full, independent audit. While internal reports are published regularly and a new CFO has taken over, critics argue these moves fall short of true transparency. Some believe Tether may seek a limited audit focused only on its reserves, but full audits are expected under the proposed GENIUS Act, which outlines strict rules for stablecoin issuers.

Under the GENIUS Act, companies issuing stablecoins would be required to undergo external audits and maintain reserves in secure assets like U.S. Treasury bonds. Tether claims it already holds a significant amount in such assets, reporting $33 billion in Treasury purchases last year. However, most of these assets are held by Cantor Fitzgerald, a financial firm closely connected to Tether.

This link has raised concerns, especially since Cantor Fitzgerald’s former CEO, Howard Lutnick, recently became the U.S. Secretary of Commerce. Critics like Jason Calcanis argue that Tether’s reputation and political ties warrant stronger oversight. He insists Tether should not be allowed to hold U.S. Treasuries until it passes an in-depth audit going back to its early operations.

Tether made massive profits last year, suggesting it has the resources to fund a full audit. Still, doubts remain about whether the company is willing to undergo the level of scrutiny required. Without compliance, Tether’s ability to operate in the U.S. may be at risk, despite its strong positioning and influence.

The crypto community is watching closely to see whether Tether will finally deliver on its audit promise. As stablecoin regulations move forward, passing a proper audit will be crucial for the company to secure its future in the regulated U.S. market and potentially form partnerships with government entities.