Circle may be a new subject under stablecoin crackdown wave: Report

Reportedly the US financial regulatory body is planning to send a Wells notice to USDC issuer company Circle. 

USDC is the second ranked & top-trusted stablecoin in the Crypto market. Circle is the backend company, which manages the USDC supply & reserves. After May 2022, USDC stablecoin grabbed huge crypto users because of the failure of TerraUSD stablecoin under a very high sell pressure situation. 

On 13 Feb 2023, Andrew, X3 founder, said that Circle could be a new subject in the ongoing regulatory actions by the United States Securities and Exchange Commission (SEC). 

Andrew noted that PayPal distanced itself from BUSD issuer company Paxos, which is enough to understand the current situation going on with stablecoin companies. 

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UPDATE: Expect @circle and USDC to be the next SEC stablecoin target to receive a Wells Notice.

**sources: “Circle will get sued, as will every other stablecoin of consequence.”

**source: “Look at @PayPal abandoning their stablecoin project; what else do you need to know?”

— Andrew (@AP_Abacus) February 13, 2023

X3 founder also said that people should not take these things fully negatively because the US SEC agency is a regulatory body not criminal, So here these companies may plan to fight against these rulings in court. 

Hurdles among crypto Investors

As we know 80% of crypto market traders use the Binance exchange and Binance stablecoin (BUSD), managed & owned by Paxos, is under the radar of lawsuit action from the SEC agency.

After BUSD stablecoin, crypto investors have only USDC as the best & top option to shift from BUSD stablecoin but due to this news, crypto investors are failing to take the right decision. 

No doubt that Tether’s USDT stablecoin is a first-ranked stablecoin in the crypto market but crypto investors are not in the mood to trust USDT stablecoin because already in the past many reports claimed that Tether holdings huge amounts of commercial debt paper, which is very risky to the USDT pegged value under high-pressure sell situation. 

Read also: India’s BCCI agency bans crypto ads & sponsors

Circle may be a new subject under stablecoin crackdown wave: Report

 

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