Tether targets first full audit amid regulatory scrutiny

Tether (CRYPTO:USDT), the issuer of the USDT stablecoin, is engaging a Big Four accounting firm to conduct its first full financial audit, aiming to verify its reserves and address long-standing transparency concerns.

CEO Paolo Ardoino emphasised the audit’s urgency, calling it a “top priority” amid industry skepticism over Tether’s claims of maintaining a 1:1 dollar peg.

The move follows years of criticism, including a $41 million fine from the U.S. Commodities and Futures Trading Commission (CFTC) in 2021 for misrepresenting reserve backing.

“If the President of the United States says this is top priority for the U.S., Big Four auditing firms will have to listen, so we are very happy with that,” Ardoino stated, linking the audit’s feasibility to political support.

While Ardoino did not specify which firm—PwC, EY, Deloitte, or KPMG—would lead the audit, Tether recently appointed Simon McWilliams as CFO to oversee the process.

Industry observers have repeatedly questioned Tether’s lack of independent audits, with Cyber Capital founder Justin Bons warning in 2024 that the firm’s unverified reserves pose an “existential threat” to crypto.

Tether’s reliance on quarterly reports, rather than comprehensive annual audits, has fueled doubts about its ability to withstand liquidity crises akin to FTX’s (CRYPTO:FTT) collapse.

The audit comes as Tether faces regulatory challenges, including delistings in the European Union under the Markets in Crypto-Assets (MiCA) framework.

While the company claims USDT is backed by cash, cash equivalents, and other assets, critics argue third-party verification is essential to restore confidence.

Ardoino’s push for transparency aligns with broader industry calls for accountability, though the audit’s scope and timeline remain unclear.

The outcome could significantly impact Tether’s position in global crypto markets, where trust in stablecoins remains a critical issue.

At the time of reporting, the Tether (USDT) price was $1.00.