NYDIG flags lack of attestation updates as USD1 supply reaches $2.7 billion
World Liberty Financial’s USD1 stablecoin is drawing attention from analysts after falling behind on its monthly attestation reports, according to a recent review by NYDIG. The last available report was published in July, sparking questions about transparency as the project’s circulation continues to expand.
The platform, which has ties to former U.S. President Donald Trump’s financial network, has seen USD1’s supply climb to $2.7 billion, a figure that places it among the larger players in the stablecoin market. However, NYDIG noted that the delay in publishing updated attestation reports could become a concern for investors and regulators, given the growing scale of the asset.
“Attestation reports are critical for investor confidence. When a stablecoin issuer falls behind, it raises questions about reserve management and compliance oversight,” According to BITX researcher.
The concern comes at a time when U.S. lawmakers are preparing to enforce the GENIUS Act, a proposed regulatory framework that could significantly reshape the stablecoin sector. The act may restrict stablecoin issuance to subsidiaries of federally regulated banks or state-qualified entities, which would tighten the operational scope for many private issuers.
If enacted, the legislation could require BitGo Technologies, the custodian reportedly supporting USD1’s reserves, to restructure its framework in order to remain compliant. Analysts suggest that the firm may need to align its operations more closely with federal banking standards to continue issuing USD1 under the new rules.
From a market perspective, World Liberty Financial’s native token (WLFI) has shown subdued momentum, with price action currently hovering near the $0.20 support zone, as seen in recent technical analysis. Traders appear cautious amid regulatory uncertainty and the lack of updated reserve verification.
“Transparency gaps, especially for a stablecoin of this size, can impact market sentiment quickly,” BITX analyst commented. “Investors want clarity before regulatory changes take effect.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
