Wormhole Proposes Changes To Curve Governance Amid Regulatory Concerns

According to Odaily, Wormhole has initiated a new proposal on the Curve governance forum, suggesting significant changes due to regulatory risks and solvency issues. The proposal recommends reducing the collateral cap for crvUSD in TUSD to zero, aiming to eliminate exposure to TUSD completely. Additionally, it proposes decreasing the mintable amount of PayPal's stablecoin PYUSD from $15 million to $5 million, ensuring that each PegKeeper's dependency aligns with the importance of their respective pools. Currently, the primary collateral for minting crvUSD includes ETH and WBTC. On September 24, the U.S. Securities and Exchange Commission (SEC) reached a settlement with TrueCoin and TrustToken over allegations of fraud and unregistered sales of investment contracts involving TrueUSD. The charges highlighted that 99% of TUSD's reserve funds were invested in high-risk offshore funds, raising concerns about its safety and solvency.