Circle denies any problems with the US regulator

Earlier it was reported online that the SEC intends to sue the USDC issuer

15.02.2023 - 10:15

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What’s new? Circle, the issuer of the second-largest centralized stablecoin, USD Coin (USDC), has denied that it received a Wells notice from the US Securities and Exchange Commission (SEC). Circle Chief Strategy Officer and Head of Global Policy Dante Disparte said this in response to the rumors online. Typically, the regulator sends such a document following its own investigation when it finds possible violations of the law, informing them of plans to take enforcement action.

.@circle has not received a Wells notice. https://t.co/lE74zHVLka — Dante Disparte (@ddisparte) February 14, 2023

What else is known? After last week, under pressure from the SEC and the financial regulator of New York, Paxos stopped issuing new BUSD stablecoins and closed token staking for US clients of the Kraken exchange, internet users believed that Circle could also face enforcement action.

Information that Circle already received a Wells notice from the SEC appeared online. FOX News reporter Eleanor Terrett was the first to report this, but after a rebuttal from the company, she apologized for the mistake. That said, Terrett previously reported, citing sources, that an SEC notice was pending against Kraken, and that information was subsequently confirmed.

CORRECTION: @circle has not received a Wells notice per @ddisparte and I truly do apologize for the mistake. I strive to get things right but also want to admit when I’m wrong. I’m sorry. — Eleanor Terrett (@EleanorTerrett) February 14, 2023

Amid increased scrutiny of cryptocurrencies by regulators and an investigation into the project’s key partner, Paxos, the PayPal payment system has paused the process of developing its own stablecoin. The stablecoin was previously expected to be released in the coming weeks.

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