How do stablecoins like USDC or PYUSD navigate regulatory scrutiny while maintaining liquidity?

[encrypted]

A: Issuers maintain full reserves or use algorithmic mechanisms under strict audits. For regulated stablecoins, intermediaries benefit from ASIC-style exemptions or FinCEN-compliant frameworks, allowing easier integration into DeFi protocols. Advanced users monitor reserve ratios, smart contract risk, and legal frameworks to avoid exposure during volatility or regulatory action.

[Nahid10]

Full reserves + strict audits That’s the foundation of a trustworthy stablecoin

[jacson4]

Full reserves + strong audits = trust. That’s the foundation for stablecoins.