Tether’s USDT stability score cut to ‘weak’ level as S&P says reserves can’t absorb bitcoin drop

The Block

S&P Global Ratings downgraded its stability assessment of Tether's USDT to 5, the weakest level on its scale, citing a rise in riskier reserve assets and warning that the stablecoin no longer has sufficient buffer to absorb a decline in bitcoin's value.

The agency said bitcoin now represents about 5.6% of USDT in circulation, more than the roughly 3.9% reserve buffer implied by Tether’s latest third-quarter attestation, published at the end of October. That means a material drawdown in bitcoin, especially if combined with losses in other high-risk holdings, could leave USDT undercollateralized, S&P said.

Tether’s riskier assets, which include bitcoin, gold, secured loans, corporate bonds, and other investments with limited disclosure, climbed to 24% of reserves as of Sept. 30, up from 17% a year earlier. S&P said those exposures, along with persistent gaps in transparency around custodians, counterparties, and asset composition, drove the revision further down from last year's "constrained" score.

A big portion of USDT's reserves is still held in short-term U.S. Treasuries and other cash-like assets, but S&P said the way those reserves are structured lacks basic investor protections seen in regulated markets, such as keeping reserve assets separate from the company’s own funds and allowing broad, straightforward redemption access.

S&P did, however, note that the stability assessment could improve if Tether reduces its exposure to high-risk assets and provides fuller disclosures about reserve composition and the creditworthiness of its banking and custody partners.

Bitcoin-linked fragility

The agency is increasingly focused on bitcoin-linked liquidity risk across the sector.

Last month, S&P assigned the Michael Saylor-chaired bitcoin treasury company Strategy a B-minus issuer credit rating, noting that its balance sheet is overwhelmingly tied to bitcoin and vulnerable to a sharp price drop. The speculative-grade rating placed Strategy in the same bucket as stablecoin issuer Sky Protocol and reflected what S&P described as shared exposure to liquidity and market-volatility shocks.

Despite the risks flagged by S&P, Tether remains by far the dominant U.S. dollar–pegged stablecoin, with a circulating supply of nearly $185 billion. Its next-largest competitor, Circle's USDC, has a market cap of under $75 billion.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

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Nasdaq-listed Upexi prices up to $23 million in private offerings as Solana treasuries whipsaw with crypto markets

The Block

Upexi (ticker UPXI), a Nasdaq-listed digital asset treasury company centered on Solana holdings, has priced a private placement of up to $23 million in common stock and warrants, the firm announced Wednesday.

According to a press release, the transaction delivers $10 million upfront and includes the potential for an additional $13 million in gross proceeds if all warrants are exercised for cash.

The offering was struck at a combined purchase price of $3.04 per share and warrant, a level the company said sits above its at-the-market price under Nasdaq rules.

Upexi noted that the price represents a 1.3x premium to its fully loaded modified net asset value calculation and is accretive to its adjusted SOL-per-share figure, which is a key metric for investors tracking the firm’s Solana accumulation strategy.

Each warrant carries a $4.00 exercise price, is immediately exercisable, and has a four-year term. Closing is expected on or around December 1, pending customary conditions.

Upexi said the net proceeds will support general corporate purposes, working capital, and the growth of its Solana treasury. A.G.P./Alliance Global Partners is acting as placement agent.

Solana treasury strategy meets market volatility

Upexi is currently one of the largest public companies holding Solana. The firm reported over 2 million SOL on its balance sheet earlier this year and has repeatedly emphasized that its core corporate strategy revolves around long-term SOL exposure and treasury optimization.

That approach has produced dramatic financial swings. As The Block reported earlier this month, Upexi posted a record quarter powered by more than $78 million in unrealized SOL gains, following a sharp run-up in Solana’s price. But recent market turbulence has reversed much of that.

According to The Block’s data dashboard, Upexi’s SOL holdings have shed more than $200 million in USD value since September’s peak as the broader crypto correction cut sharply into corporate digital asset treasuries. UPXI shares have also shed nearly 40% in the last month as crypto markets whipsawed.

Still, the company plans to continue its corporate crypto strategy. Upexi recently launched a stock buyback program, arguing that Solana-denominated treasury firms need to demonstrate capital discipline as market conditions turn.

The firm said today’s private placement will help reinforce that balance sheet strategy while preserving dry powder for future Solana purchases.

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Who’s Kevin Hassett, Trump’s reported crypto-friendly pick for the Fed?

Cointelegraph

US President Donald Trump is slated to choose a new Federal Reserve chair by Christmas, and the frontrunner, Kevin Hassett, could be a boon for the crypto industry.

Hassett is a White House economic adviser who has reportedly emerged as a strong candidate for the Fed chair position. He is the director of the National Economic Council and oversaw the digital asset working group directed by the White House earlier this year.

Trump has been trying to increase his administration’s control over the Federal Reserve, the country’s central bank, thereby expanding the White House’s influence over monetary policy.

The nomination process has not yet begun, but observers are already speculating about what a Hassett chairmanship could mean for US monetary policy and crypto.

Fed frontrunner Kevin Hassett has supported crypto in the past

Hassett was an assistant professor of economics at the Columbia Business School in the 1990s. While there, he also served as an economist in the Division of Research and Statistics at the Federal Reserve Board of Governors. He was also a policy consultant with the Department of the Treasury under the administrations of former presidents George H.W. Bush and Bill Clinton.

Hassett briefly sat on the White House Council of Economic Advisors during the first Trump administration. During the president’s second term, Hassett served as director of the National Economic Council (NEC), a part of the executive branch that the president uses for setting domestic and international economic policy.

Despite a lack of clear public statements, Hassett is widely regarded as pro-crypto. In June, he revealed a stake of at least $1 million in Coinbase and that he was compensated at least $50,001 for his role on the exchange’s Academic and Regulatory Advisory Council.

The NEC, where he serves as director, oversaw the development of the White House’s digital asset working group, which published a paper earlier this year outlining the administration’s policy on crypto.

The Fed doesn’t oversee securities or commodities, so its policy changes can’t affect crypto regulation. But a crypto-friendly Fed could still have a positive impact on the industry in several ways.

Firstly, lower interest rates generally mean better crypto prices. Juan Leon, a senior investment strategist at Bitwise, said that the implications for markets are “strongly bullish.” He called Hassett an “aggressive ‘dove’ who has publicly criticized current rates for being too high and advocated for deeper, faster cuts.”

Zach Pandl, head of research at digital asset investment platform Grayscale, said, “On the margin Hassett should be considered positive for crypto => supports rate cuts, past Coinbase advisor, NEC director during White House crypto policy push.”

The Fed also regulates banks, namely bank holding companies, payment system access, reserve requirements and liquidity and risk rules. Tightening or loosening these rules could affect crypto companies’ access to a number of services, including:

Crypto custody
Lending against crypto collateral
Access to payment rails
Stablecoin issuer requirements vis-a-vis banking regulations
Settlement rules.

Still, the White House has yet to make a clear nomination. Treasury Secretary Scott Bessent announced in late October that Hassett was on a short list of five nominees to replace Jerome Powell. These included former Fed Governor Kevin Warsh, current Fed Governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder. A nomination is expected by Christmas.

Trump administration threatens an independent Fed

Trump has been attempting to assert more control over the Federal Reserve as a means to exert greater influence over his preferred monetary policies.

Earlier this year, he attempted to fire Federal Reserve Governor Lisa Cook. Her refusal to step down sent the case to the Supreme Court, which, for the time being, has allowed her to stay on.

In a court filing, Cook’s lawyer, Abbe Lowell, called the attempt a “broadside attack on the century-old independence of the Federal Reserve System.”

The Council of Foreign Relations has lauded the independence of this system, stating that it “shields the Federal Reserve from undue political influence, such as pressure from the White House to lower interest rates ahead of an election, which could offer short-term political gains but cause long-term economic harm.”

An independent Fed also “enhances the Fed’s credibility” and makes the market more confident in its decisions. “Crucially, it also empowers the Federal Reserve to take difficult but necessary actions, even when they are unpopular.”

John Authers, a senior editor for markets and Bloomberg Opinion columnist, wrote that choosing Hassett “appears to be about loyalty.”

“Trump regards nominating Jerome Powell eight years ago as a big mistake. Waller, Warsh and Rieder all in different ways might establish themselves as independent from the administration.”

George Pollack, a senior US policy analyst at Signum Global Advisors, reportedly said that Trump will nominate Hassett “because of his confidence that Hassett will be the candidate most likely to support the administration’s priorities.”

Were the Fed to become another arm of the administration, the results could be good for crypto markets in the short term but disastrous elsewhere. Lower-than-needed interest rates could score cheap political points but lead to increased inflation.

The Center for American Progress explained, “Knowing that the rates will be based on well-researched data, and not political whims, assures the world that the U.S. economy will remain relatively stable and its markets will remain rational.”

Magazine: Getting scammed for 100 Bitcoin led Sunny Lu to create VeChain

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Bitwise rolls out Dogecoin ETF on the NYSE: ‘Against the odds, it has kept its relevance’

The Block

Crypto fund manager Bitwise launched its Dogecoin exchange-traded fund on Wednesday, debuting the product — built around a picture of a cute dog — on the New York Stock Exchange.

"DOGE began as a joke and came to become an icon of the crypto movement. It doesn't purport to transform global capital markets or convince you it has fundamentals or utility," said Bitwise CEO Hunter Horsley in a statement. "DOGE is simply a 12-year-old coin based on a picture of a cute dog, people doing good, and the common ideal in crypto that people should have the freedom to do as they choose."

"And, against the odds, it has kept its relevance—and its value—longer than just about anything else in crypto," Horsley added, and said that Bitwise launched its ETF because DOGE holders want the benefits of such a fund.

Dogecoin is the 10th largest crypto by market capitalization at $23 billion, according to The Block's price page. The coin started as a meme featuring the Shiba Inu dog that later caught billionaire Elon Musk's attention as the billionaire regularly posted about the memecoin. Later in 2025, Musk and former presidential candidate Vivek Ramaswamy led the Department of Government Efficiency, or DOGE, which helped push the coin north of $0.40 at one point, although it has come all the way back down to the $0.15 area. This past week, Reuters reported the department had been disbanded earlier than expected.

The Bitwise Dogecoin ETF (ticker BWOW) joins a growing field of DOGE-based funds. The Grayscale Dogecoin ETF began trading on Monday and the REX-Osprey DOGE ETF launched in September. The latter one took a different approach since it is registered under the Investment Company Act of 1940 — a federal law that regulates investment funds that pool capital from investors to pursue a common investment strategy.

Grayscale's GDOG saw $1.4 million in day-one trading volume, which Bloomberg's Eric Balchunas said was "solid for an avg launch but low for a 'first-ever spot' product. Not too surprising tho."

NYSE Arca, a subsidiary of the NYSE Group, certified Bitwise's listing on Tuesday, setting BWOW up for launch. The Bitwise Dogecoin ETF looks to provide exposure to the memecoin's value and said Coinbase Custody Trust Company, LLC will serve as the custodian, according to a previous registration statement.

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Bitcoin analysis sees $89K short squeeze with S&P 500 2% from all-time high

Cointelegraph

Bitcoin hovered near $87,000 at the Wednesday Wall Street open as analysts eyed short liquidations.

Key points:

Bitcoin liquidity conditions analysis predicts a return toward $90,000 next.
Range-bound short-term price moves see trader bets pile in either direction.
US macro data gives stocks a modest boost but fails to sway crypto.

Liquidity could see BTC “pulled up” toward $89,000

Data from Cointelegraph Markets Pro and TradingView showed flat BTC price action characterizing the day’s trading.

A lack of volatility allowed liquidity to build either side of price, with $88,000 now an area of interest for trading resource TheKingfisher.

“There are a lot of short liquidations for $BTC on Binance around $88,253.90, which means the price could get pulled up towards that level,” it explained in a post on X.

Crypto investor and entrepreneur Ted Pillows flagged $89,000 as the key reclaim level for shorts to feel the pain.

“If BTC reclaims the $89,000 level, upside liquidity will be swept first. If Bitcoin loses the $85,000 level, the downside liquidity will be taken out before a bounce back,” he told X followers the day prior.

Data from monitoring resource CoinGlass put the major liquidity draws at $84,500 and $88,500 at the time of writing.

Crypto analyst Lennaert Snyder noted that the long/short ratio among traders was “roughly 50/50” into $89,000 resistance.

“We need Bitcoin to eat some stop losses and grab fuel before the next directional move,” he commented.

“Two scenario's I like is either we gain $89K, or sweep the $80.6K lows and bounce back.”

Bitcoin steady as S&P 500 heads higher

The day’s macroeconomic data prints had little impact on the stubborn BTC price action.

US jobless claims came in below expectations, potentially reflecting strengthening labor-market conditions.

Despite this, stocks climbed after the open, while bets of a Federal Reserve interest-rate cut in December remained favorable to risk assets.

CME Group’s FedWatch Tool put the odds of a 0.25% cut at the Fed’s Dec. 10 meeting at 83% at the time of writing — up considerably from 30% just a week prior.

While acknowledging rising fear levels, trading resource The Kobeissi Letter stressed that the S&P 500 was now just 2% away from fresh all-time highs.

“Asset owners are winning,” it concluded.

The Kobeissi Letter
@KobeissiLetter
Investor fear levels are rising:
The cost of a 5-year put option protecting against at least a -55% drop in the S&P 500 has risen to 46 basis points, the highest since the April sell-off.
Excluding April, this is the highest level in at least 2 years.
This means investors are… pic.twitter.com/5SEXCSpfjy
Nov 26, 2025

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Vitalik Buterin Charts ‘Targeted Growth’ as Ethereum Hits 60M Gas Limit Milestone

Coinpedia

Ethereum just crossed a major milestone and Vitalik Buterin is already pointing to the next one.

After months of steady pressure from the community, the network is now running with a 60 million block gas limit, a full 2× jump in just one year.

This shows up clearly in validator signaling, where support for 60M blocks has climbed fast and now sits neck-and-neck with the older ≤45M range.

Ethereum Hits 60M

The chart shared alongside the announcement shows exactly how quickly sentiment has changed.

Toni Wahrstätter ⟠
@nero_eth
Just a year after the community started pushing for higher gas limits, Ethereum is now running with a 60M block gas limit.
That’s a 2× increase in a single year — and it’s only the beginning.
H/t to all client teams, the researchers involved, and to @nanexcool and @econoar for… pic.twitter.com/5JB8FoiACP
Nov 26, 2025

It’s the clearest sign that the network is ready to handle more activity per block.

A member from the Ethereum Foundation summed it up: “Just a year after the community started pushing for higher gas limits, Ethereum is now running with a 60M block gas limit.”

Vitalik’s Message: More Growth, But With Guardrails

Vitalik Buterin jumped in with his own response. He’s preparing the community for a different kind of expansion next year.

“Expect continued growth but more targeted / less uniform growth for next year,” he wrote.

In plain terms: the gas limit may rise again, potentially by 5×, but some operations will also get 5× more expensive. This isn’t to punish developers. It’s to keep the network safe as it scales.

Vitalik even listed the operations he thinks should cost more.

vitalik.eth
@VitalikButerin
Expect continued growth but more targeted / less uniform growth for next year.
eg. one possible future is: 5x gas limit increase together with 5x gas cost increase for operations that are relatively inefficient to process
Potential targets for such increases (my current view):… https://t.co/FkiTxJnEAq
Nov 26, 2025

Why It Matters

Ethereum is moving into a phase where higher capacity alone isn’t enough. More block space helps, but raising limits blindly risks congestion, slower block propagation, and heavier requirements for home validators.

That’s why developers have spent the past year running benchmarking tools, coordinating clients, and testing how nodes behave under heavier loads.

Vitalik’s approach keeps the door open for more throughput while protecting the network from bloat and instability. Contracts that waste storage or run heavy computation will finally feel the cost of it.

The Road Ahead

If Ethereum follows this model, users should see smoother performance during high-demand periods, while developers will need to write cleaner, more efficient code. Validators, meanwhile, must stay updated as gas limits continue to climb.

Ethereum is tuning itself for long-term durability. And if Vitalik’s comments are any indication, the shift to smarter, more intentional growth has only just begun.

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Texas Drops $10 Million On Bitcoin, Officially Buying The Dip First

NewsBTC

Texas has moved public money into Bitcoin exposure, buying $5 million worth of shares in a regulated Bitcoin exchange-traded fund.

According to reports, the state’s purchase was made on November 20, 2025, and it used the BlackRock iShares Bitcoin Trust (IBIT) to gain price exposure without immediately holding the cryptocurrency itself.

The state set aside a total allocation of $10 million for its new Strategic Bitcoin Reserve. Lee Bratcher, who leads the Texas Blockchain Council, confirmed the state’s crypto purchase on X.

State Uses ETF As Interim Step

Reports have disclosed that officials chose the ETF route as a temporary measure while the state puts custody plans in place.

The IBIT shares give Texas a stake that tracks Bitcoin’s market moves. Based on reports, the entry price equated to roughly $87,000 per BTC at the time of the buy.

The buy represents half of the total allocation, leaving $5 million still available for future moves.

Lee ₿ratcher
@lee_bratcher
TEXAS BOUGHT THE DIP! Texas becomes the FIRST state to purchase Bitcoin with a $10M investment on Nov. 20th at an approximately $87k basis! Congratulations to Comptroller @KHancock4TX and the dedicated investments team at Texas Treasury who have been watching this market… pic.twitter.com/wsMqI9HrPD
Nov 25, 2025

The move follows legislation passed earlier in the year. According to public records, the reserve program was created by Senate Bill 21, signed in June 2025.

The law authorizes a capped budget for the reserve and sets conditions for what assets qualify. Reports have disclosed that Bitcoin met the criteria laid out in the measure, prompting the initial allocation.

What Officials Say And What Comes Next

According to state officials, the purchase is meant as a hedge and a way to diversify long-term holdings. An RFP process is expected to pick a custodian, with officials planning to transfer from ETF positions to direct custody once systems are ready. The request for proposals is slated for early 2026, based on public statements.

Analysts noted the distinction between ETF shares and direct ownership. ETF holdings provide price exposure; they do not give the state direct control over on-chain Bitcoin wallets. That control would come only after the state completes its custody procurement and shifts assets into cold storage or similar solutions. Possible Broader Effects

Market observers say the purchase is notable because it marks one of the first instances of a US state formally placing public funds into Bitcoin exposure.

The amount is small relative to broader markets, yet symbolic. It may prompt other states to consider similar reserve strategies, especially where lawmakers favor diversification.Transparency And Oversight

According to public filings, the state will publish details of the holdings and any custody plan updates. Oversight mechanisms built into the law require regular reporting, and the remaining $5 million allocation must follow the same rules before it is used. That reporting will be watched closely by lawmakers, taxpayers, and market watchers.

The buying decision was made amid wide debate over how government bodies should handle crypto assets. Texas plans to move carefully, using regulated products first and then moving toward self-custody when the proper safeguards and vendors are chosen.

Featured image from Pexels, chart from TradingView

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