US regulators may classify USDL as a money-market fund, which requires Paxos International to geofence access by US users to the stablecoin’s yield-bearing features.

Quotes that support claims

In the case of Paxos, whose USDL stablecoin is yield-bearing and rebasing, the situation is especially nuanced.

US regulators may treat such an instrument as a money market fund, so Paxos International, which issues USDL from Abu Dhabi, must geofence US access.