This is a topic that I am admittedly unsure about, but it is important to all crypto investors. The topic is which stablecoin to hold your "crypto fiat" in to protect yourself from regulation.
Please feel free to correct me on anything I get wrong, and feel free to leave links to resources in the comments.
With XRP opening the door to regulation from the SEC, I think it's important to identify projects that will protect your defi portfolio from getting rekt if surprise lawsuits get handed down. The most important aspect of this protection, in my opinion, is the stablecoin you choose to hold your value.
Tether (USDT) and Circle (USDC) are both within the purview of US regulation. They are both centralized, which makes them easy to take down. If you are holding this when a lawsuit comes down, it could knock the coin off its peg (I'm assuming).
Of the larger stablecoins, I'm looking at Binance USD (BUSD) as the most stable. Binance is an international company. They have already cut ties to an extent with the US. If the SEC tries to regulate BUSD, it should hold no weight, correct?
I'm not really considering Dai right now because the latest hacks all seem to involve Dai. The protocol seems to be technically weak.
I'm still looking at stablecoins offered from Aave and other protocols. Forgive me. This are weedy waters, but it's a discussion that needs to be had. An ounce of prevention is worth a pound of cure.