Tether Aims for ‘Full Financial Audit’ with Appointment of Simon McWilliams as CFO

Tether, the issuer of the largest stablecoin, has made a significant move to address ongoing concerns about its financial transparency. The company announced that Simon McWilliams has been appointed as its new Chief Financial Officer (CFO), with a clear mandate to steer the company toward a full financial audit. This decision comes in response to long-standing skepticism about Tether’s operations, particularly regarding its lack of a comprehensive audit.

The need for greater transparency in the stablecoin sector grew following the collapse of the crypto market in 2022, which left both users and institutional investors calling for clearer assurances of asset backing. In response, many exchanges began publishing proof-of-reserves reports to demonstrate they held sufficient assets, sometimes with surplus reserves.

Tether initially addressed this by introducing quarterly attestations by BDO Italy, an independent consulting firm. However, despite these attestations, many users and industry observers remained unconvinced, pushing for a full financial audit instead.

In light of this, Paolo Ardoino, Tether’s CEO, expressed confidence that McWilliams’ expertise in financial audits would help lead the company into a new era of transparency. McWilliams will replace Giancarlo Devasini as CFO, with Devasini transitioning to the role of Chairman of the Tether Group.

The timing of this announcement is notable, as U.S. lawmakers have started to make progress on stablecoin regulations. Republican Representative Bryan Steil recently introduced the STABLE Act in the House, and Senator Bill Hagerty has proposed the GENIUS Act in the Senate. Wyoming Senator Cynthia Lummis, who chairs the Senate Banking Subcommittee on Digital Assets, has emphasized that stablecoin regulations will be prioritized before broader crypto market legislation.

Meanwhile, Circle CEO Jeremy Allaire has argued that U.S. dollar-backed stablecoin issuers should be required to register domestically, to better protect consumers. However, there is growing concern that new regulatory measures could disadvantage offshore stablecoin issuers like Tether, potentially blocking them from accessing U.S. Treasury markets. Some critics view this as giving Circle an unfair advantage, and fueling accusations of “regulatory capture.”

In response to these regulatory developments, Ardoino took to social media, claiming that rival stablecoin projects were attempting to undermine Tether’s position in the market. He pointed to USDT’s continued dominance, with a market capitalization of $142 billion, and its backing of approximately $115 billion in U.S. Treasury bills—more than the combined holdings of Circle and all other dollar-pegged stablecoins.

Tether’s appointment of McWilliams and its focus on transparency comes at a time when the stablecoin market is facing increasing scrutiny from both regulators and competitors. It will be interesting to see how these changes impact Tether’s position in the growing and increasingly regulated market for stablecoins.