Tether CEO Paolo Ardoino criticized S&P Global Ratings' downgrade of USDT's stability rating from "4 (constrained)" to "5 (weak)," citing bias against crypto firms, announced via Twitter.
The downgrade highlights growing tension between traditional financial rating agencies and crypto assets, raising concerns about Tether's reserve adequacy amid potential market volatility, especially for Bitcoin-related liquidity.
Tether's CEO Paolo Ardoino criticizes S&P Global Ratings for downgrading USDT's stability, arguing the agency's methodology is outdated and biased against crypto firms.
The S&P downgrade of Tether’s USDT highlights ongoing concerns in the crypto sector, pushing for revised risk models and governance frameworks tailored to digital assets.
Tether CEO Criticizes Outdated Methodology from S&P
Tether's CEO Paolo Ardoino has strongly criticized S&P Global Ratings for downgrading USDT's stability rating. He asserts that the agency’s methodology is outdated and biased, especially against crypto firms challenging traditional finance models."The traditional finance propaganda machine is growing worried when any company tries to defy the force of gravity of the broken financial system," Paolo Ardoino, CEO of Tether, stated. He described the rating as an example of "loathing," expressing pride and defending Tether’s overcapitalization and profitability.The downgrade was triggered by increased exposure to high-risk reserve assets like Bitcoin and Gold, which now constitutes around 5.6% of Tether’s reserves. This has sparked debates about the stability and transparency of USDT in the emerging financial sectors.