diff --git a/Cargo.lock b/Cargo.lock
index 66e714a..cbf3669 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1680,7 +1680,7 @@ dependencies = [
  "p3-miden-lifted-stark",
  "p3-symmetric",
  "p3-util",
- "rand 0.9.2",
+ "rand 0.9.4",
  "rand_chacha",
  "rand_core 0.9.5",
  "rand_hc",
@@ -1815,7 +1815,7 @@ dependencies = [
  "opentelemetry-otlp",
  "opentelemetry_sdk",
  "prost-types",
- "rand 0.9.2",
+ "rand 0.9.4",
  "serial_test",
  "thiserror",
  "tokio",
@@ -1932,7 +1932,7 @@ dependencies = [
  "miden-protocol-macros",
  "miden-utils-sync",
  "miden-verifier",
- "rand 0.9.2",
+ "rand 0.9.4",
  "rand_chacha",
  "rand_xoshiro",
  "regex",
@@ -2306,7 +2306,7 @@ dependencies = [
  "futures-util",
  "opentelemetry",
  "percent-encoding",
- "rand 0.9.2",
+ "rand 0.9.4",
  "serde_json",
  "thiserror",
  "tokio",
@@ -2822,7 +2822,7 @@ checksum = "4b45fcc2344c680f5025fe57779faef368840d0bd1f42f216291f0dc4ace4744"
 dependencies = [
  "bitflags",
  "num-traits",
- "rand 0.9.2",
+ "rand 0.9.4",
  "rand_chacha",
  "rand_xorshift",
  "regex-syntax",
@@ -3012,9 +3012,9 @@ checksum = "f8dcc9c7d52a811697d2151c701e0d08956f92b0e24136cf4cf27b57a6a0d9bf"
 
 [[package]]
 name = "rand"
-version = "0.9.2"
+version = "0.9.4"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "6db2770f06117d490610c7488547d543617b21bfa07796d7a12f6f1bd53850d1"
+checksum = "44c5af06bb1b7d3216d91932aed5265164bf384dc89cd6ba05cf59a35f5f76ea"
 dependencies = [
  "rand_chacha",
  "rand_core 0.9.5",
diff --git a/Cargo.toml b/Cargo.toml
index 643f113..972d387 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -29,7 +29,7 @@ anyhow = { default-features = false, version = "1.0" }
 async-trait = { version = "0.1" }
 base64 = { version = "0.22" }
 chrono = { features = ["serde"], version = "0.4" }
-clap = { features = ["derive"], version = "4.5" }
+clap = { features = ["derive", "env"], version = "4.5" }
 deadpool = { default-features = false, features = ["managed", "rt_tokio_1"], version = "0.12" }
 deadpool-sync = { version = "0.1" }
 fs-err = { version = "3" }
diff --git a/bin/node/docker/docker-compose.yml b/bin/node/docker/docker-compose.yml
index 9b1505d..8d5c57c 100644
--- a/bin/node/docker/docker-compose.yml
+++ b/bin/node/docker/docker-compose.yml
@@ -8,9 +8,9 @@ services:
       - "57292:57292"  # gRPC
       - "9091:9090"  # Health checks
     environment:
-      - OTEL_ENABLED=true
+      - MIDEN_TLNODE_ENABLE_OTEL=true
       - JSON_LOGGING=true
-      - OTEL_TRACES_ENDPOINT=http://otel-collector:4317
+      - MIDEN_TLNODE_OTEL_ENDPOINT=http://otel-collector:4317
       - OTEL_EXPORTER_OTLP_PROTOCOL=http/protobuf
       - OTEL_SERVICE_NAME=miden-note-transport-node
       - RUST_LOG=INFO
diff --git a/bin/node/src/main.rs b/bin/node/src/main.rs
index cc4a340..d160309 100644
--- a/bin/node/src/main.rs
+++ b/bin/node/src/main.rs
@@ -36,6 +36,18 @@ struct Args {
     /// Connection timeout in seconds
     #[arg(long, default_value = "4")]
     request_timeout: usize,
+
+    /// Enable OpenTelemetry tracing and metrics export
+    #[arg(long, env = "MIDEN_TLNODE_ENABLE_OTEL", default_value = "false")]
+    enable_otel: bool,
+
+    /// OpenTelemetry OTLP endpoint
+    #[arg(
+        long,
+        env = "MIDEN_TLNODE_OTEL_ENDPOINT",
+        default_value = "http://localhost:4317"
+    )]
+    otel_endpoint: String,
 }
 
 #[tokio::main]
@@ -44,7 +56,7 @@ async fn main() -> Result<()> {
     let args = Args::parse();
 
     // Setup tracing
-    let tracing_cfg = TracingConfig::from_env();
+    let tracing_cfg = TracingConfig::new(args.enable_otel, args.otel_endpoint.clone());
     setup_tracing(tracing_cfg.clone())?;
 
     info!("Starting Miden Transport Node...");
diff --git a/crates/node/src/logging.rs b/crates/node/src/logging.rs
index d04eaa4..d47c362 100644
--- a/crates/node/src/logging.rs
+++ b/crates/node/src/logging.rs
@@ -33,22 +33,12 @@ pub enum OpenTelemetry {
 }
 
 impl TracingConfig {
-    /// Tracing configuration constructor using environment variables
-    pub fn from_env() -> Self {
-        let otel = {
-            let otel_enabled = std::env::var("OTEL_ENABLED")
-                .unwrap_or_else(|_| "false".to_string())
-                .parse()
-                .unwrap_or(false);
-            if otel_enabled {
-                OpenTelemetry::Enabled {
-                    endpoint: std::env::var("OTEL_TRACES_ENDPOINT")
-                        .ok()
-                        .unwrap_or("http://localhost:4317".to_string()),
-                }
-            } else {
-                OpenTelemetry::Disabled
-            }
+    /// Create a new tracing configuration with explicit parameters.
+    pub fn new(enable_otel: bool, otel_endpoint: String) -> Self {
+        let otel = if enable_otel {
+            OpenTelemetry::Enabled { endpoint: otel_endpoint }
+        } else {
+            OpenTelemetry::Disabled
         };
 
         TracingConfig {
diff --git a/deny.toml b/deny.toml
index 3082ab7..18e1cf4 100644
--- a/deny.toml
+++ b/deny.toml
@@ -43,7 +43,9 @@ allow = [
   "FTL",
   "ISC",
   "JSON",
+  "LGPL-3.0-or-later",
   "MIT",
+  "MPL-2.0",
   "MS-PL",
   "OpenSSL",
   "PostgreSQL",