The cryptocurrency market continues to navigate global economic challenges, with analysts predicting ongoing pressure due to trade wars. Meanwhile, stablecoin issuer Tether is in discussions with a Big Four accounting firm for its first full financial audit, and the US Treasury Department has officially removed crypto mixer Tornado Cash from its sanctions list.
Crypto Market Under Pressure Until April, Says Analyst
Despite positive industry developments, the crypto market faces continued pressure from global trade conflicts. According to Nicolai Sondergaard, a research analyst at blockchain analytics firm Nansen, risk assets may struggle for direction until concerns over tariff-related trade wars subside.
Sondergaard expects these pressures to persist until at least April 2, when reciprocal tariff rates introduced by former President Donald Trump are set to take effect. While US Treasury Secretary Scott Bessent had previously suggested a possible delay, no official changes have been confirmed. Analysts believe that market sentiment could shift between April and July, offering a potential catalyst for price movements.
Tether Engages Big Four Firm for First Full Audit
Tether, the issuer of the world’s largest stablecoin, USDT, is reportedly in discussions with a Big Four accounting firm to conduct its first full financial audit. This move aims to reassure investors that USDT is fully backed by reserves at a 1:1 ratio.
Paolo Ardoino, CEO of Tether, expressed confidence that the audit process will be smoother under the pro-crypto stance of US President Donald Trump. He suggested that the President’s support for the industry could encourage major auditing firms to engage with stablecoin issuers.
“If the President of the United States says this is a top priority for the US, Big Four auditing firms will have to listen, so we are very happy with that,” Ardoino told Reuters on 21 March.
Although Tether currently provides quarterly reports on its reserves, it has never undergone a full independent annual audit, which would offer a higher level of transparency. However, Ardoino did not disclose which of the Big Four firms—PricewaterhouseCoopers (PwC), Ernst & Young (EY), Deloitte, or KPMG—Tether is negotiating with.
Tornado Cash Removed from US Sanctions List
In a major regulatory shift, the US Treasury Department has officially removed Tornado Cash, a cryptocurrency mixer, from its sanctions list. The decision follows a ruling in January by a US appeals court, which determined that Tornado Cash’s smart contracts could not be sanctioned under current law.
The court stated that because Tornado Cash’s immutable smart contracts do not belong to any foreign entity or individual, the Treasury’s Office of Foreign Assets Control (OFAC) overstepped its legal authority by imposing sanctions. As a result, on 21 March, the Treasury announced the removal of several Tornado Cash-affiliated Ethereum smart contract addresses from the blacklist.
Following the announcement, Tornado Cash’s native token, TORN, saw a sharp increase of around 60%, according to data from CoinMarketCap. The token’s market capitalization now stands at approximately $73 million, with a fully diluted valuation of nearly $140 million.
While this decision represents a significant win for privacy-focused crypto projects, it remains to be seen how regulators will approach similar cases in the future.
