Tether’s USDT stablecoin, which has gained a large market share, has seen significant advancements recently. However, there have been concerns about the reserves backing up these coins. In just the past week, Tether released an extra $2 billion worth of USDT into the market. With increasing calls for transparency, Tether’s CEO, Paolo Ardoino, has expressed a willingness to undergo an audit by one of the Big Four accounting firms.
Tether Audit By A Big Four Remains “Top Priority”
Based on statements from Tether CEO Paolo Ardoino, it seems that Deloitte, PwC, EY, and KPMG have been reluctant to work with Tether because of fears over possible harm to their respective reputations.
Ardoino expressed that none of the Big Four firms have agreed to audit Tether. Yet, he underscored the importance of obtaining one of these firms as Tether’s auditor.
At present, Tether’s USDT, with a market value exceeding $109.5 billion, ranks third among all cryptocurrencies in circulation. To boost investor confidence in this stablecoin, it would be beneficial to conduct a thorough audit of its reserves. This is particularly important given allegations that USDT is frequently used for illicit activities as suggested by recent reports.
Tether plays a vital role in the world of cryptocurrencies, making it simple to convert between traditional money and digital assets.
On major cryptocurrency exchanges, USDT (Tether’s stablecoin) is frequently used to trade alongside top cryptocurrencies such as Bitcoin, Ethereum, and Solana due to its popularity and stability.
Due to its extensive popularity, it’s essential that Tether’s USDT is properly backed by sufficient reserves. However, acquiring respected accounting firms to ensure this can be difficult. Various obstacles include the FTX incident, past security breaches, and the regulatory hurdles prevalent in the crypto sector.
US Congress Against Crypto
Ardoino raised doubts about why a major auditing firm from the Big Four would risk losing their substantial clientele in the banking industry just to audit a few stablecoin companies, such as Tether. He further pointed out that these stablecoin firms do not offer the same level of profitability as traditional banking giants for the Big Four to consider auditing them.
Nevertheless, he voiced his readiness to transition from the reviews conducted by BDO Italia every three months. “We aim to argue our case,” he explained. “Our goal is to establish connections and secure an audit from a Big Four accounting firm.”
Senator Elizabeth Warren, a well-known Democratic legislator from Massachusetts and outspoken critic of the cryptocurrency industry, criticized what she called “fraudulent audits” that some crypto companies undergo. In an interview with DLNews, Tether’s CEO commented on this issue, stating, “It’s clear that there are elements in the US Congress who are hostile to crypto.”
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2024-04-19 10:10