Regulatory overview increases the risk of censoring endpoints of the stablecoin's network (such as the issuer, banks and custodians) as well as users. A score of 0 indicates a high degree of government censorship risk.
USDD’s core functionality exists on the blockchain without any real world assets directly backing USDD. Further, the entity in control of USDD’s BTC assets is likely located in a jurisdiction that enables regulatory arbitrage and operational freedom.
As such, USDD seems to benefit from little to no regulatory oversight.