Tether CEO Slams Ratings Agency | Influencers Spread USDt Concerns
Edited By
Benjamin Turner
Tether's CEO, Paolo Ardoino, recently reacted strongly against S&P Global's downgrade of USDt's dollar-peg rating. The move has sparked debate amid growing criticism regarding the transparency and backing of the stablecoin.
Tether Faces Increasing Scrutiny
Recent comments from Ardoino suggest a defensive stance against the ongoing doubts over Tether's financial stability. Critics point out that despite the CEO's claims, the underlying issues of transparency and risk remain unresolved. One commentator stated, "if Tether could pass a real, independent audit, it would’ve done it years ago."
What's Behind the Rating Change?
S&P Global cited that Tether's collateralization is becoming riskier. According to their assessment, Tether is not fully transparent about what backs USDT and mixes customer funds with its operational budget. The continued low rating from S&P reflects skepticism about Tether’s financial practices.
Diverse Perspectives Emerge
Many voices on forums reflect a mix of sentiments. Some argue that Tether's collapse might benefit the crypto market, suggesting it could stabilize pricing by eliminating excessive unbacked money. A user claimed, "Tether going bust would be the best thing to ever happen to crypto pricing."
Yet, others defend Tether’s profitability, citing revenues of $500 million a month from US Treasury rates as a strength. Ardoino touted a Q3 2025 attestation showing $215 billion in assets against $184.5 billion in liabilities.
"This sets a dangerous precedent," one top commenter warned, highlighting that Tether's financial maneuvers could spell trouble for the broader crypto industry.
What Comes Next?
As the debate continues, many are calling for greater accountability. Suggestions for regular audits have been echoed widely, urging Tether to restore confidence.
Key Points of Contention
Transparency Issues: Users worry about Tether's accounting methods and risk management.
Market Impact: Opinions are divided on how Tether's downfall would impact crypto values.
Urgent Audit Calls: Many are demanding Tether undergo independent audits to prove financial integrity.
🔍 72% of comments express concerns over Tether's transparency.
📉 Tether holds a D rating with challenges in global markets for transparency.
✅ “Hire an audit if you got nothing to hide,” a user advised.
The ongoing tension between Tether and critics presents a crucial moment for the future of USDt and its role in cryptocurrency markets.
What's on the Horizon?
The outlook for Tether suggests a potential shift in the crypto landscape within the next year. There’s a strong chance that increased pressure for transparency could lead Tether to finally undergo independent audits, driven by mounting public and market scrutiny. Experts estimate around a 60% probability that these audits will occur as they aim to retain confidence among investors and stabilize their position in the market. Conversely, if Tether fails to act, it may face significant repercussions, risking further downgrades and possibly igniting a sell-off of USDT. Ultimately, how Tether responds to demands for accountability could set the tone for regulatory actions affecting the entire cryptocurrency sector.
An Unlikely Echo from History
The situation with Tether hints at the dynamics seen during the 2008 financial crash when shaky practices in real estate banking led to a widespread loss of trust. Back then, the collapse of certain banks spurred a ripple effect, reshaping the entire financial landscape and prompting regulatory reforms that redefined accountability. Just as some questioned the foundations of major financial institutions, today many are scrutinizing Tether's operational integrity and transparency, suggesting that a significant shake-up in the crypto world may also pave the way for new rules and expectations in the digital currency realm.