After the SEC charged TUSD, Curve is considering removing it as collateral for crvUSD

2024-09-26 08:28:10

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According to ChainCatcher news and reported by Cointelegraph, the decentralized exchange Curve Finance is considering removing TrueUSD (TUSD) from its collateral list for the stablecoin crvUSD. This move stems from the U.S. Securities and Exchange Commission (SEC) filing securities law violation charges against TUSD issuer TrueCoin on September 24.

The SEC alleges that TrueCoin falsely advertised that TUSD is fully backed by U.S. dollars or equivalent assets, while in fact, as of September 2024, 99% of TUSD reserves are invested in high-risk offshore funds. The Curve community has proposed to reduce the collateral cap for TUSD as crvUSD collateral to zero and to lower the collateral cap for PayPal's stablecoin PYUSD from $15 million to $5 million.

Currently, WBTC and wstETH are the largest sources of collateral for crvUSD, locking approximately $68 million and $60 million, respectively.

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SEC TUSD Curve Finance

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