Curve Considers Dropping TUSD After SEC Charges

Curve Finance is considering removing TrueUSD (TUSD) from backing its crvUSD stablecoin following SEC charges against TUSD’s issuer, TrueCoin, for securities law violations. The SEC alleges that 99% of TUSD’s reserves were backed by a risky offshore fund, raising concerns about its stability. A proposal on Curve’s governance forum suggests eliminating TUSD exposure and reducing reliance on PayPal’s stablecoin, PYUSD. The changes aim to address regulatory risks and diversify crvUSD’s collateral. CrvUSD is primarily backed by Wrapped Bitcoin (WBTC) and Staked Ether (wstETH).