According to developers, constructing the borrowing and lending protocol is no longer considered a feasible direction for Algorand.

In the near future, Algofi, the borrowing and lending protocol developed on the decentralized finance blockchain Algorand, is set to close its operations.

In a statement released on July 11, it was mentioned that despite the developers' unwavering confidence in the strength of Algorand's technology and innovative consensus algorithm, the Algofi platform will be gradually phased out in the near future.

Commencing from September 1, the collateral factors for ALGO, vALGO, STBL, USD Coin goBTC, and goETH markets on both Algofi V1 and V2 will be gradually decreased from approximately 80% to 0% by the start of December. Additionally, the ongoing Liquidity Mining initiatives will be halted, with no future proposals to be implemented. As of the time of this announcement, the Algofi protocol had a total value locked of $25 million, a decline from its peak of $135 million in February.

Back in April, the U.S. Securities and Exchange Commission (SEC) took legal action against cryptocurrency exchange Bittrex, accusing it of running an unregistered exchange within the United States. Among the six tokens that the SEC classified as securities was Algorand. The SEC claimed that the security-like attributes of the token were partially associated with Algorand's initial coin offering conducted in 2019.

As of June 13, eToro, a cryptocurrency exchange, decided to suspend trading of ALGO, MANA, MATIC, and DASH for its U.S. customers due to the "dynamic and evolving regulatory environment." At present, the U.S. Securities and Exchange Commission (SEC) has classified 68 cryptocurrencies as securities.