Stablecoin

crvUSD

TrueFi

TrueUSD

Curve Finance, a leading decentralized exchange (DEX) for stablecoin trading, is considering removing TrueUSD (TUSD) as collateral for its native stablecoin Curve USD (crvUSD).
<h2 id="curve-finance-proposes-removal-of-trueusd-as-collateral-for-crvusd-amid-regulatory-concerns">Curve Finance Proposes Removal of TrueUSD as Collateral for crvUSD Amid Regulatory Concerns</h2>
The move comes after growing concerns over TUSD’s regulatory and transparency issues, including recent accusations from the U.S. Securities and Exchange Commission (SEC), which accused TrueUSD’s original issuer of defrauding investors.
The proposal, submitted by a user named WormholeOracle, suggests lowering the cap for TUSD supporting crvUSD to zero, meaning TUSD will no longer be allowed to support the issuance of crvUSD.
The proposal also proposes reducing crvUSD’s minting capacity from $15 million to $5 million using PayPal’s stablecoin PYUSD to better diversify collateral assets.
“crvUSD is overexposed to smaller stablecoins, particularly TUSD, which has a questionable track record and was recently accused by the SEC of defrauding investors,” WormholeOracle wrote in the recommendation.
They added that TUSD struggles with pegging stability and transparency issues compared to other stablecoins that are powered by PegKeepermechanism, a liquidity pool used to maintain crvUSD’s $1 peg.
Currently, $10 million worth of crvUSD can be minted using TUSD. Curve Finance’s governance system, which is run by CRV token holders, will now review and vote on the proposal.
The discussion on removing TUSD is part of a larger strategy to reduce risk and ensure stability in crvUSD.
This comes after TUSD’s original issuer, TrueCoin, faced legal action by the SEC for offering unregistered securities through its TrueFi platform.
The SEC had alleged that TUSD was not fully backed by US dollars as claimed and that almost all reserves were invested in a speculative offshore fund.
*This is not investment advice.
 Continue Reading: <a href="https://en.bitcoinsistemi.com/another-blow-to-stablecoin-tusd-accused-of-fraud-by-sec-here-are-the-details/" rel="noopener noreferrer nofollow">Another Blow to Stablecoin TUSD Accused of Fraud by SEC! Here Are the Details</a>

Another Blow to Stablecoin TUSD Accused of Fraud by SEC! Here Are the Details

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