Tether, a stablecoin, is facing doubts over its reserves and stability, with concerns over potential undercapitalization. Despite earning over $10 billion in profits in 2025, S&P Global recently downgraded Tether’s USDT, citing risks due to bitcoin reserves exceeding 5%. Tether’s CEO defended the company’s practices, rejecting the need for audits.

Angel investor Jason Calacanis suggested Tether sell its bitcoin holdings and switch to U.S. treasuries, urging for audits. This sparked controversy, with critics questioning the logic of such a move and highlighting past financial missteps. The debate over Tether’s transparency and need for audits continues, with some calling for increased scrutiny.

Read more at Yahoo Finance: Tether’s Downgrade at S&P Sparks Online Battle