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Key Highlights:

- The SEC accused TrueCoin LLC and TrustToken Inc. of fraud and selling unregistered investment contracts. The agency claims these companies made misleading statements about TUSD's backing.

- In a recent governance forum post, Wormhole, a cross-chain messaging protocol, suggested reducing the upper limit on TUSD backing for crvUSD to zero. This is aimed at mitigating regulatory risk and addressing concerns over TUSD's solvency.

- The PegKeeper liquidity pool allows users to mint up to $10 million in crvUSD using TUSD. However, the proposal indicates that crvUSD is overexposed to minor stablecoins, particularly TUSD, which has faced scrutiny.

- The proposal also recommends reducing the mintable amount for Paypal’s stablecoin, PYUSD, from $15 million to $5 million, aligning with the significance of each PegKeeper pool.