Tether’s Strategic Shift Sparks Debate in Crypto Community

BitMEX co-founder Arthur Hayes used platform X to discuss Tether’s financial strategies on November 29-30, 2025, questioning their Bitcoin and gold reserve moves against upcoming Fed rate cuts.

The potential insolvency of USDT raises alarms for market stability, prompting calls for increased transparency amid Tether’s strategic shifts towards cryptocurrency and gold amid interest rate concerns.

Tether’s Shift to Bitcoin and Gold Sparks Liquidity Concerns

BitMEX co-founder Arthur Hayes addressed Tether’s strategic pivot towards accumulating Bitcoin and gold assets, raising questions about its consequences. This shift comes as Tether anticipates Federal Reserve interest rate cuts, moving away from cash-like instruments. While Tether remains solvent on paper, holding approximately $181 billion against $174 billion liabilities, market participants are assessing liquidity risks arising from this asset adjustment.

Theoretical solvency issues garner focus due to the possibility of gold and Bitcoin prices declining by around 30%, potentially dissipating Tether’s equity cushion. Market observers stress the importance of maintaining confidence in Tether’s reserves amid these strategic financial adjustments. Hayes suggested increased demand for real-time audits of Tether’s balance sheets from major holders and exchanges to assess ongoing solvency.

“The Tether team is in the early stages of large-scale interest rate trading. They believe the Federal Reserve will cut interest rates, which will significantly reduce interest income. To cope with this situation, they are buying gold and Bitcoin; theoretically, as the price of currency falls, the prices of these assets should soar. If the holdings of gold and Bitcoin drop by about 30%, their equity will vanish, and at that point, USDT could theoretically go bankrupt. I believe some large holders and exchanges will demand real-time access to their balance sheets to assess Tether’s solvency risk.” — Arthur Hayes, Co-founder, BitMEX.

Hayes’ analysis spurred strong reactions across the crypto community. Critics argue that Tether’s profitability can withstand such shifts, citing its broader equity stance. Former Citi Research’s Joseph noted Tether’s profitability beyond disclosed assets. Despite skepticism, Tether maintains its operational stance confidently, though community debates on financial transparency persist.

Historical Resilience and Regulatory Scrutiny Intensify Debates

Did you know? Tether has managed to sustain its USDT peg during previous crypto market downturns, leveraging high-interest periods to generate profits and reinforce market confidence.

Bitcoin (BTC) currently trades at $91,498.59, with a market cap of 1.83 trillion, indicating a 58.78% dominance in the crypto market. Despite recent volatility, Bitcoin’s 24-hour trading recorded a 0.51% increase, though 60-day figures show a 22.06% decline. Market data reflects adjustments following Tether’s strategic movements and potential regulatory impacts from expected Federal Reserve actions. CoinMarketCap

Expert insights from the Coincu team suggest that regulatory scrutiny on stablecoin reserves may increase as central banks influence interest rate directions. Tether’s asset choices, notably in volatile commodities like gold and Bitcoin, might elevate regulatory questions about reserve safety and financial disclosure accuracy.