Tether CEO Paolo Ardoino has indicated a willingness to undergo a Big Four audit to dispel continuing concerns about the stablecoin issuer’s reserves. Despite guaranteeing each USDT token is completely supported with matching reserves, Tether has not yet submitted a full audit, leaving lingering doubts of its solvency.
Ardoino shared with Fox Business that the company is augmenting their partnership with law enforcement agencies in order to combat the growth of crypto crime, investing heavily in emerging innovative technologies such as AI, and considering an audit from a Big Four firm to enhance transparency. He disclosed, however, that getting certified by an auditing firm may hit stumbling blocks due to U.S. regulation challenges in the realm of cryptocurrency, specifically limitations that make it hard for auditing firms to onboard crypto clients, particularly if they’re based abroad.
An audit from a Big Four company would allow investors and regulators more certainty, as they delve deeper into a firm’s full financial records and internal processes over a lengthier timeframe. This stands in contrast to attestations, which are more limited and only focus on detailed financial data during a given point in time. Pledge of full audit can either bring about a new period of enhanced transparency in the crypto arena or validate industry’s worst fears.
Despite the hurdles, Ardoino remains optimistic that regulatory conditions might improve post upcoming U.S. elections, potentially opening a pathway for a more feasible full audit.