S&P Global Ratings has downgraded Tether's USDT to a 'Weak' rating, citing increased risks from its Bitcoin exposure and a shift towards higher-risk assets in its reserves. The downgrade highlights concerns as Bitcoin now constitutes 5.6% of Tether's reserves, surpassing its 3.9% safety buffer, which could destabilize the $184 billion stablecoin. The rating agency also pointed to a lack of transparency and insufficient collateral backing USDT, raising alarms for users in emerging markets who depend on the stablecoin as a dollar substitute. This development underscores the growing scrutiny on Tether's reserve management and its implications for the broader crypto market.