Crypto Market Update: Tether Seeks Full Audit, Tornado Cash Removed from Sanctions List, and More

Tether Moves Toward Full Financial Audit with Big Four Accounting Firm

Tether, the issuer of the popular stablecoin USDT, is reportedly in discussions with a Big Four accounting firm to conduct its first full financial audit. The audit aims to verify that the USDT stablecoin is indeed backed by a 1:1 ratio with reserves, addressing ongoing concerns about Tether’s transparency.

According to Tether CEO Paolo Ardoino, the audit process will be smoother under the administration of pro-crypto U.S. President Donald Trump. This decision comes amid growing industry concerns over the potential for an FTX-style liquidity crisis for Tether, especially given its lack of third-party audits in the past.

Ardoino emphasized that the audit is now a top priority for the company, as it seeks to bolster its credibility with investors and regulators. While Tether currently provides quarterly reports, a full independent annual audit would offer more detailed assurances about its reserves. However, Ardoino did not disclose which of the Big Four accounting firms—PricewaterhouseCoopers (PwC), Ernst & Young (EY), Deloitte, or KPMG—it plans to engage for the audit.

Crypto Markets to Face Continued Pressure from Trade Wars Until April

Despite a range of positive developments in the crypto industry, analysts predict that global tariff concerns will continue to exert pressure on the markets until at least April 2, 2025. Nicolai Sondergaard, a research analyst at Nansen, stated that risk assets, including cryptocurrencies, may lack direction until tariff-related issues are resolved, which could happen between April 2 and July 2025.

This timeline, Sondergaard suggests, could act as a potential market catalyst, providing a boost to crypto assets once tariff concerns are clarified. The tariff concerns stem from President Trump’s reciprocal tariff rates, which are scheduled to take effect on April 2, despite earlier indications from U.S. Treasury Secretary Scott Bessent of a potential delay.

U.S. Treasury Removes Tornado Cash from Sanctions List

In a significant shift, the U.S. Treasury Department has officially removed the cryptocurrency mixer Tornado Cash from its sanctions list. This decision follows a January 2025 ruling by a U.S. appeals court, which determined that the Treasury’s Office of Foreign Assets Control (OFAC) cannot sanction Tornado Cash’s smart contracts because they do not constitute property owned by a foreign national.

According to the court’s ruling, Tornado Cash’s smart contracts, which enable privacy by obscuring blockchain transactions, are not owned by any individual or entity. This means that OFAC overstepped its authority by sanctioning Tornado Cash’s decentralized smart contracts, which are immutable lines of code.

On March 21, the Treasury Department issued a statement confirming the removal of several Tornado-affiliated smart contract addresses on the Ethereum blockchain from its sanctions list. This move has had a positive impact on Tornado’s native token, TORN, which surged by around 60% following the announcement. As of March 21, TORN had a market capitalization of approximately $73 million, with a fully diluted value (FDV) nearing $140 million.

In Summary

The cryptocurrency market today is influenced by several key developments:

Tether is seeking a full audit to enhance transparency and reassure investors about the stability of USDT.

Global trade concerns are likely to keep pressure on the crypto markets until April 2, 2025, potentially influencing the direction of crypto assets.

The U.S. Treasury Department has removed Tornado Cash from its sanctions list, following a court ruling that deemed its smart contracts beyond the scope of U.S. sanctions.

These developments, alongside the broader regulatory landscape, are shaping the current state of the crypto market, with potential for both challenges and opportunities in the coming months.