FDUSD is an unregulated instrument. It is not subject to regulatory/ external oversight mechanisms, and regulations/guidelines that impose prudential limitations on what an issuer can do. Unlike most other issuers of fiat backed stablecoins which are either regulated as a stablecoin issuer, money transmitter or payment institution, First Digital Labs is none of those. It has full discretion over its own governance, operations and treasury management.

At present, holders of FDUSD solely rely on contractual protections arising from FDUSD's terms of service, which holders have no power to negotiate.