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Breaking: Circle squashes rumors of planned SEC enforcement action

Rumors swirled on Twitter that the stablecoin issuer received a litigation notice from the U.S. securities regulator, but a Circle executive rebuffed the claim.

Circle, the publisher of dollar coins (USDC), denied rumors that he had received a "Booz notice" because he was pegged to the dollar's stable currency.

On Feb. 14, Ford Fox Business Services journalist Eleanor Trette posted a deleted tweet saying that Circle had been ordered by the Foreign Securities and Exchange Commission to stop the sale of USDC because it was an unregistered security.

But Dante Dippat, Circle Pay's chief strategy officer and head of current policy around the world, quickly refuted the rumor. After 15 minutes of tweeting, Dipat replied on Twitter that none of its companies had been notified by Wells Fargo.

The Wells Fargo notice is an announcement from SEC informing the consignees that the agency plans to take enforcement action against them.

In response to Circle's negative, Trette said she "complied with several of the latest news sources" and apologized for her problems.

Dante accepted her apology and added:

"well, now most of the ups and downs, eddies and rumors are in the sales market."

Tret's original tweet has been deleted. His Twitter account was temporarily deleted, but then came back.

Anxiety about regulators' actions by stablecoin issuers has been rising this week, previously Binance issuers. (BU.S.) Paxos Trust Company, the issuer, confirmed that it had received notification from Wells that it could not apply to register the offering under federal securities laws.

Earlier this week, when asked if Circle had received a similar notification from SEC about USDC, Disparte told Cointelegraph:

Circle insists that USDC is a regulated US dollar digital currency that is sold as stored value for members under the US currency transfer Act.

He added: "the facts and conditions in all kinds of strict regulatory practices are different, and the structure and control of each digital currency in circulation around the world are not the same."

by wjb news
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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