ECP NetHappenings Copyright, Paypal, Tether Headlines

ECP NetHappenings Copyright, Paypal, Tether Headlines

→ This is great news.
The Supreme Court has for now blocked Trump from firing Shira Perlmutter, the head of the US Copyright Office.
Just before she was fired, Perlmutter’s office issued a report saying it was unlikely all generative AI training would be considered fair use.
https://newrepublic.com/post/203753/donald-trump-supreme-court-fire-copyright-official

→  The first CFO of PayPal is now Ambassador to Denmark because
Musk needs Greenland to get his trillion dollar payout—and Peter Thiel needs to justify Palantir’s ludicrous P/E of *over 400*.
It’s all a huge pump and dump.
Deport the PayPal Mafia.

THE WAY THE WORLD WORKS

S&P Downgrades Tether USDT Stability to Lowest Rating

“S&P Global Ratings dropped its stability score for Tether’s USDT—the world’s largest stablecoin with $184 billion in circulation—to the lowest level of 5 from 4, citing rising risks from Bitcoin exposure exceeding buffers and less liquid assets like gold and loans now at 24% of reserves. Concerns also include disclosure gaps and no full independent audit, even as Tether’s latest attestation shows $6.8 billion in excess reserves backed by over $135 billion in U.S. Treasuries. Ardoino defended Tether as overcapitalized and highly profitable, arguing traditional finance models miss its strengths amid past fines and scrutiny.
Because they can’t incorporate in the U.S. and instead turned to the dictatorship country El Salvador and U.S. regulations won’t allow Tether so they have to make up a new coin for the U.S. markets. pretty easy to see it’s a big ole fraud.
JUST IN: $USDT issuer Tether becomes largest independent holder of Gold in the world, FT reports.
S&P Downgrades Tether USDT Stability to Lowest Rating
S&P Global Ratings downgrades Tether’s USDT, citing increased exposure to Bitcoin and Gold

THE BIG SHORT

conflicts of interest and dishonesty amongst the credit rating agencies

The Big Short (2015) – FrontPoint Partners confronts Morgan Stanley Risk Assessors and S&P

“Institutions are not falling over themselves to buy gold or even care that gold is at all time highs! Why? Because they have captured gold with paper gold. They a frantic and desperate to posses bitcoin by any means while publicly disparaging Bitcoin! A complete hypocrisy!
Time will prove that Tether’s strategy of holding hard assets (BTC/Gold/Land) is far less “risky” than holding fiat currency.”

JUST IN: $USDT issuer Tether becomes largest independent holder of Gold in the world, FT reports.
Paolo Ardoino @paoloardoino
Nov 26
to S&P regarding your Tether rating:

We wear your loathing with pride.

The classical rating models built for legacy financial institutions, historically led private and institutional investors to invest their wealth into companies that despite being attributed investment grade ratings collapsed pushing worldwide regulators to challenge such models, the independence and objective assessment of all major rating agencies.

The traditional finance propaganda machine is growing worried when any company tries to defy the force of gravity of the broken financial system. No company should dare to decouple itself from it.

Tether instead built the first overcapitalized company in the financial industry, with no toxic reserves. And yet is and remains extremely profitable. Tether is living proof that the traditional financial system is so broken that it’s becoming feared by the emperors with no clothes.

S&P JUST DOWNGRADED TETHER TO “WEAK”
The $184 billion backbone of crypto markets is one crash away from insolvency.
The math is devastating:
Bitcoin holdings: 5.6% of reserves
Safety buffer: 3.9%
Read that again. The volatile asset exceeds the cushion meant to absorb its fall.
S&P’s exact words: A decline in bitcoin’s value “could lead to USDT being undercollateralized.”
This is not speculation. This is a major credit rating agency stating in plain language that the instrument 500 million people use as their dollar—from Lagos to Manila to Caracas—cannot survive the kind of drawdown bitcoin has delivered multiple times in its history.
The backstory makes it worse:
New York Attorney General found Tether was fully backed only 27.6% of days examined during a 26-month period. The CFTC fined them $41 million for claiming dollar backing while holding “non-fiat financial products.”
They didn’t reform. They grew. USDT quadrupled since those settlements.
Now S&P confirms: No asset segregation in insolvency. No full audit—ever. Custodians and counterparties remain undisclosed. High-risk assets climbed from 17% to 24% of reserves in twelve months.
Tether’s response? CEO Paolo Ardoino says they wear S&P’s “loathing with pride.”
The implications:
USDT processes $100 billion daily. It is the circulatory system of crypto. A de-peg doesn’t just hurt Tether holders—it paralyzes the infrastructure through which most cryptocurrency trading occurs.
The emerging market users holding USDT as their only dollar savings have no idea this rating exists.
The century’s largest unregulated dollar experiment just received its first official verdict.
The market will deliver the second.​​​​​​​​​​​​​​​​
Read the full deep dive article here
https://open.substack.com/pub/shanakaans