Curve Finance is considering deleting TUSD from CRVUSD support due to SEC editions

• Curve Finance is considering deleting TUSD from CRVUSD support due to SEC editions.
• The SEC claims that TUSD was largely covered by a risky offshore fund and not by US dollars.
• The proposed changes include reducing the TUSD cover to zero and reducing the pyusd embossing.

In view of the latest official control, Curve Finance is considering removing a well -known decentralized stock exchange (Dex), Trueusd (TUSD) from their security options for the curve stablecoin (CRVUSD).

This consideration follows the SEC (Securities and Exchange Commission) against Truecoin, which issued TUSD issuers, which is raised by the US Stock Exchange Supervisory Authority.

suggestion to highlight the TrueusD support for CRVUSD

on September 25th Proposal Cross-chain-messaging protocol, posted in the Governance Forum from Curve. The proposal suggests to reduce the upper limit for TUSD support for CRVUSD to zero in order to eliminate the engagement in TUSD in the face of increasing regulatory concerns and problems with regard to its solvency.

Currently, users can shape the Pegkeeper liquidity pool CRVUSD worth up to $ 10 million and use TUSD as security.

In addition, the proposal recommends reducing the PYUSD stable coat of CRVUSD from $ 15 million to $ 5 million in order to ensure a balanced dependency on the pegkeeper pools according to the importance of the respective asset.

This strategic adaptation reflects the intention of Curve to improve stability and reduce the risks associated with regulatory uncertainties.

concerns about the dependency on the TUSD

The recent measures of the SEC, in particular the charges raised against Truecoin and Trustken due to fraudulent and non-registered sales of investment contracts related to TUSD, have reinforced the concern within the crypto community.

In the complaint of the SEC it is claimed that Truecoin and Trustken have misled investors with the claim that Tusd was completely covered by US dollars, while actually a considerable part of its reserves-namely 99 %-was invested in a speculative offshore fund.

This risky investment strategy has aroused doubts about TUSD's reliability as a stable security option.

According to these revelations, Truecoin and Trustken have neither admitted nor contested the allegations, but have agreed on legally binding judgments that prohibit future violations of Federal Working Act. As part of the agreement, you will also have to pay civil law in the amount of $ 163,766 each.

At the moment, the coverage of CRVUSD comprises various cryptocurrencies, whereby Wrapped Bitcoin (WBTC) holds the largest share and constitutes a total value of over $ 68 million (TVL).

It follows Wrapped Staked Ether (WSteth), issued by Lido Finance, at around $ 60 million in TV>

The community proposal underlines the need for a stronger diversification among the Pegkeepers and indicates the risks that are associated with excessive dependence on lesser-known stable coins such as TUSD, which has been subjected to an examination in view of its latest regulatory challenges.