Curve is considering removing TUSD as collateral for crvUSD due to concerns raised by SEC allegations
Curve Finance is considering removing TrueUSD (TUSD) as collateral for its stablecoin crvUSD, due to the U.S. Securities and Exchange Commission (SEC) bringing securities law violation charges against TrueCoin and TrustToken. The charge alleges that 99% of TUSD's reserve funds are invested in high-risk offshore funds, raising concerns about its safety and solvency. A proposal has been put forward in Curve's governance forum suggesting reducing the TUSD collateral limit for crvUSD to zero, and decreasing association with PayPal's stablecoin PYUSD to mitigate related risks. Currently, the main collaterals for crvUSD include Ethereum (ETH) and Wrapped Bitcoin (WBTC).
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