Tether Shifts Reserves: Controversial Move Sparks Industry Debate

Crypto stablecoin issuer Tether is making significant changes to its reserve management strategy, triggering debate within the industry. BitMEX co-founder Arthur Hayes highlights the shift toward increased exposure to Bitcoin (BTC) and gold as a response to predicted Federal Reserve rate cuts. While he sees this as an advantageous move in changing economic conditions, he acknowledges potential risks if asset prices decline sharply. This could lead to renewed scrutiny of USDT’s backing.