The team behind USD1, a stablecoin linked to a DeFi project by World Liberty Financial, is falling behind on updating monthly attestation reports, causing concern for investors and regulators. USD1’s latest report is from July, putting it behind rivals like USDC and Tether in transparency. BitGo and World Liberty Financial have not responded to requests for comment.

BitGo Trust manages USD1’s reserves, but the issuer, BitGo Technologies, has not explained the reporting delay. With USD1’s growing popularity and $2.7 billion in supply, the lack of updated reports is concerning. NYDIG analysis shows that a majority of USD1’s supply is held in addresses associated with overseas exchanges.

USD1’s structure may face challenges with the upcoming GENIUS Act, limiting stablecoin issuance to regulated bank subsidiaries or state-qualified entities. NYDIG notes that BitGo Technologies currently does not fit into these categories, potentially requiring structural changes for compliance.

For a project like USD1, up-to-date attestations are crucial for transparency and trust among investors and regulators. With regulatory changes on the horizon, BitGo Technologies may need to make structural adjustments to comply with new laws and maintain USD1’s stability and reputation.

Read more at Yahoo Finance: Trump-Linked World Liberty Financial’s Stablecoin Needs Better Attestation Reports, NYDIG Says