Tether completes audits by the Big Four, causing Circle's stock price to plummet: the trust landscape of stablecoins is undergoing a reversal

Tether’s Audit Announcement Breaks “Black Box” Label, Circle’s Stock Price Declines Reflect Deeper Issues

This time, Tether didn’t just announce cooperation with the Big Four auditors but directly changed the long-standing market perception of being “opaque and shady.” Within hours of the announcement, it garnered over 99K views and 766 likes, with multiple endorsements—USDT, long questioned, has suddenly become a potential compliance leader, directly challenging USDC’s long-held “more transparent” advantage. Analysis from The Defiant and Bankless pointed out that this move aligns with the requirements of the GENIUS Act and could pave the way for USDT’s return to the U.S. market. Crypto Twitter accounts like CoinBureau and Scott Melker also called it a “trust upgrade,” with related posts receiving 150-500+ likes each.

But more noteworthy is that on-chain data didn’t immediately follow suit. There was no surge in trading volume, no spike in DEX activity, and no obvious liquidity rotation. This “moment of buzz” hasn’t yet translated into actual trading actions—something to keep in mind.

Meanwhile, Circle’s stock price fell 17-22%, fluctuating between $98-104. Attributing this entirely to Tether’s news isn’t accurate, but the audit announcement did amplify existing pressures. Decrypt and The Block linked the decline to weakened USDC competitive advantages and the provisions in the Clarity Act draft that prohibit “economic equivalence” benefits—these benefits account for about 96% of Circle’s revenue. ZachXBT also pointed out several wallet freeze events, adding further noise. Overall, this doesn’t look like a “one-day market move” but rather institutions systematically reassessing Circle’s story.

TVL data remains calmer: Tether still leads with $184B, followed by Circle at $78B, with no clear short-term shifts. USDT briefly dipped to $0.986 but quickly rebounded to $1.00—pegged and stable, with no panic selling.

• The revenue restrictions in the Clarity Act draft are not background noise—they directly impact Circle’s business model. Traders need to reassess whether USDC’s 25% market share can withstand audited Tether in an “audit + compliance” era.
• The bullish narrative on Tether spreading quickly on Crypto Twitter (50+ highly engaged tweets), but most overlook real risks: no specific audit firms named, timelines unclear, implementation to be observed. Short-term optimism may be overdone.
• Stable on-chain TVL and activity indicate a “slow burn” rather than “immediate trading.” Institutional rotation will happen gradually, favoring patience over chasing quick gains or panic selling.

Summary: Most traders react slowly to Tether’s compliance progress, underestimating its future trajectory, while overreacting to “bad news week” for Circle. Patient capital has the advantage—over the next few quarters, as audits become a market consensus, there could be a 20-30% reallocation of stablecoin market share.

Conclusion: For the “audit and compliance” theme of stablecoins, we are still in the “early-mid” window; the most advantageous players are patient and institutional funds (funds, long-term allocators). Short-term traders relying solely on sentiment have low win rates; building medium-term positions backed by audit credibility aligns better with this narrative.