Tether CEO Responds: Overcapitalization and Traditional Finance Critique
Tether CEO Paolo Ardoino has publicly criticized S&P Global's downgrade of USDT, questioning the credibility of traditional rating systems and advocating for Tether's financial model. He described Tether as overcapitalized and free from toxic assets, while criticizing the reluctance of legacy institutions to accept new models. Ardoino’s comments highlight ongoing tensions between Tether and mainstream finance, which he believes fail to adequately assess digital financial models.
The event highlights tensions between traditional finance and crypto-native models, raising questions about regulatory frameworks and the stability of cryptocurrency ecosystems. The downgrade has not caused immediate shifts in Tether's operations or its market influence. USDT continues to maintain its dollar parity despite the rating change, bolstered by Tether’s large market position. No notable changes have emerged in Tether’s issuance or investor backing as a result of the rating adjustment.
Paolo Ardoino, CEO of Tether Holdings Ltd., stated: "We wear your loathing with pride. The classical rating models built for legacy financial institutions… historically led private and institutional investors to invest their wealth into companies that despite being attributed investment grade… collapsed."
Key figures in the industry have backed Ardoino's stance. Binance CEO CZ noted Tether's efforts towards transparency, while BitMEX co-founder Arthur Hayes spoke of the downgrade as a signal of crypto’s disruptive potential. Market voices voicing support for Tether’s independence further augment the discourse on financial rating appositeness.
USDT’s Stability During Market Turbulence and Regulatory Eye
The USDT's ability to keep its dollar peg amid scrutiny mirrors the 2023 S&P initiation of stablecoin ratings when Tether faced critical assessments but preserved market confidence.
According to CoinMarketCap, Tether USDt (USDT) traded steadily at $1.00 on November 27, 2025, maintaining a market capitalization of 184,597,521,985.00 with a dominance of 5.96%. The trading volume reached 102,705,954,791.00, marking a 1.64% increase. Recent price changes show a modest stability with minimal fluctuations over various periods: +0.08% in 24 hours, +0.12% over 7 days, and -0.02% within 60 days.
The Coincu research team suggests potential regulatory shifts could arise from persistent scrutiny, possibly impacting Tether’s reserve disclosure. Historical trends indicate regulatory bodies might push for increased transparency in stablecoin reserves, challenging Tether to adapt while maintaining its market leadership.