Quick Take
The USD0++ token devalues amid a redemption change.
CFPB proposes rulemaking for crypto wallets.
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USD0++ Devalues Amid Redemption Change
USD0++, a liquid derivative of USD0 that earns yield, has devalued from its long-standing $1 price. The drop follows Usual Protocol's announcement introducing a new redemption floor of 0.87 USD0 per USD0++, assigning its value akin to a zero-coupon bond with a four-year maturity. The change replaces the previous 1:1 redemption option. Usual Protocol allows users to stake USD0, its dollar-pegged stablecoin backed by treasury assets, to mint USD0++, a token that earns rewards in $USUAL tokens over a four-year lock-up. Following the announcement, significant holders, including Gauntlet, began exiting their USD0++ positions. The price of USD0++ reached a new low of about $0.91. Next week, users will be able to redeem USD0++ for USD0 at the 1:1 rate, but this requires forfeiting accrued rewards.
CFPB Crypto Wallet Regulation
The Consumer Financial Protection Bureau (CFPB) proposed new rulemaking to extend the Electronic Fund Transfer Act (EFTA) to include cryptocurrency wallets. Under the proposal, wallet providers would be held responsible for unauthorized transactions, including those resulting from fraud, theft, hacking, or leaked credentials. The proposal does not clarify on whether it applies exclusively to custodial wallets managed by third parties or also includes self-custody wallets controlled directly by users. In response, Coin Center released an analysis highlighting concerns about the rule’s constitutional implications, its vagueness, and its potential overreach. Public comments on the proposed rulemaking are being accepted until March 2025.
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