Tether’s CEO publicly criticized S&P and social media influencers after S&P downgraded USDT’s peg stability, pointing to Tether’s Bitcoin and gold holdings as the rationale. The exchange between rating agency and issuer sharpens scrutiny over reserve composition and market confidence in the world’s largest stablecoin.
S&P Global Ratings downgraded Tether’s USDT, pointing to increased reserve exposure to Bitcoin and the resulting price-risk to the stablecoin peg. The move raises short-term market and regulatory scrutiny of Tether’s backing strategy.