Senate Report Alleges Tether’s USDT Central to Iran’s Shadow Banking

Senate Report Tether — A new U.S. Senate report alleges that Tether’s USDT stablecoin has become a central component of Iran’s shadow banking system, facilitating sanctions evasion.

The report, from the Senate Homeland Security Committee, details how the stablecoin is being used to move funds for sanctioned Iranian entities. It claims the network involves exchanges and middlemen operating outside of regulated financial channels.

The findings place significant scrutiny on Tether’s compliance controls and its role in the global financial system. The stablecoin issuer has previously faced criticism over the transparency of its reserves and its efforts to police illicit finance.

This Senate investigation adds to growing regulatory pressure on stablecoin operators to prevent their tokens from being used to bypass international sanctions and money laundering laws.