Tether Taps KPMG to Audit USDT Stablecoin amid CLARITY Act Progress

Tether, the world’s largest stablecoin issuer, has hired accounting firm KPMG for a full audit of USDT stablecoin reserves ahead of US expansion. The company has also tapped PwC to help prepare its internal systems for the process.

This move comes amid the latest progress on the CLARITY Act, with bipartisan support to pass the crypto bill after careful resolution on stablecoin yields matter.

Tether Selects KPMG to Audit USDT to Push for Greater Transparency

Tether signed a ‘big four’ auditing firm to complete the first full audit for its $185 billion USDT stablecoin reserves, as CoinGape reported. The stablecoin issuer quoted the move as “the biggest ever inaugural audit in the history of financial markets.”

Tether did not initially name the firm in its official release, but FT reported it as KPMG on March 27. The stablecoin issuer plans to build credibility ahead of its US expansion plan and potential fundraising.

The company is also engaging the accounting firm PwC to assist with audit readiness, as per sources familiar with the matter.

The audit will examine Tether’s assets, liabilities, reserves, internal controls, and reporting systems. This is beyond the quarterly attestations the company has historically provided.

Earlier this month, Tether appointed Simon McWilliams as CFO to enhance transparency and regulatory engagement. The Big Four firm was selected through a competitive process, noting Tether already operates at Big Four audit standards and that “the audit will be delivered,” said McWilliams.

This development addresses years of scrutiny over USDT’s backing. Tether was fined $41 million in 2021 for misleading claims about full fiat reserves, and critics have long called for more stringent and independent audits.

Timing Aligns with CLARITY Act Progress

Tether selecting KPMG announcement coincides with significant progress on the CLARITY Act. Representatives from the crypto industry and banking sector reviewed new legislative language in the crypto market structure bill governing stablecoin yield and rewards.

Crypto industry leaders remarked on the stablecoin yield compromise text as “restrictive,” with Coinbase opposing the updated CLARITY Act draft. Closed-door discussions continue as the Senate Banking Committee eyes a possible markup in mid-April.

Senate Banking Committee Chairman Tim Scott said the White House, Republicans and Democrats are working together on language that both parties agree on to pass the CLARITY Act. This caused the odds of the CLARITY Act getting signed into law in 2026 to bounce to 60% on Polymarket.

Analysts view Tether’s audit as a major step to strengthen its position in the United States. Notably, Tether has already launched USAT, a US dollar-pegged stablecoin, to comply with U.S. regulations like the GENIUS Act. It is issued by Anchorage Digital Bank and managed by CEO Bo Hines, a former crypto advisor to Donald Trump.