The U.S. Senate has conducted an investigation concluding that the Iranian regime extensively uses the USDT stablecoin issued by Tether. This investigation is currently just a report and does not involve formal enforcement or penalties. USDT is the dominant asset for pricing and settlement in offshore trading. This conclusion increases the compliance risks of sanctions for Tether and exchanges handling USDT fund flows, potentially impacting liquidity and counterparty access. No enforcement actions or changes to market access have been announced yet.