S&P downgrades USDT peg to “weak”; Tether CEO slams rating agency and influencers, cites Q3 attestation figures

first published 2025-11-30T14:25:10Z

S&P Global lowered its reserve score for Tether’s USDT from 4 to 5, citing opaque reserve reporting and that bitcoin now makes up over 5% of USDT reserves, which raises undercollateralization risk if BTC falls. Tether CEO Paolo Ardoino defended the company’s capitalization and criticized traditional finance. Investors and commentators demanded clearer disclosures, audits, and reduction of BTC holdings, triggering a heated public debate on transparency and stablecoin risk amid a crypto bear market.

AI Analysis

S&P downgraded USDT’s reserve grade from 4 to 5 due to opaque reserve reporting and BTC >5% of reserves, increasing undercollateralization risk if BTC falls; public calls for audits and BTC reduction followed, making the news negative for confidence but not an immediate market-moving regulatory event.

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