Circle (USDC) officer revokes all rumours of enforcement action

Dante Disparte confirmed that Circle has not received any Wells notice from the US Securities regulatory body.

Circle is a stablecoin issuer company that manages supply & fund reserves behind USDC stablecoin. For the last few days, many media reports & rumours claimed that the United States Securities and Exchange Commission (SEC) may send a Wells notice & also initiate a lawsuit over the nature of USDC stablecoin. These rumours started after the SEC’s Wells notice to Paxos over the nature of BUSD stablecoin.

On 14 Feb 2023, Fox Business reporter Eleanor Terrett tweeted that SEC ordered Circle to stop the sale of USDC stablecoin because USDC is an unregistered security.

Dante Disparte, chief strategy officer and head of global policy at Circle Pay, responded to this tweet of this Fox reporter & confirmed that Circle has not received any kind of Wells notice.

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.@circle has not received a Wells notice. https://t.co/lE74zHVLka

— Dante Disparte (@ddisparte) February 14, 2023

Later, Fox reporter admitted her mistake and said that she tweeted that information on behalf of multiple news sources.

Here is the response from @circle. I went with the word of several trusted sources on this. I apologize for the mistake @ddisparte. https://t.co/NjyD57PDuZ

— Eleanor Terrett (@EleanorTerrett) February 14, 2023

Nasdaq listed Crypto exchange Coinbase, a contributor in Circle company, responded against all such reports and suggested people not believe in these reports which are based on predictions & expectations because all the stablecoin companies are already regulated.

In particular, he noted that Circle (USDC) and also BUSD & USDP issuer Paxos are fully regulated & licensed stablecoin companies in the US.

10/ Remember, stablecoins are already regulated. Paxos is regulated as a NY Trust Company by NYDFS. USDC is regulated as a stored value instrument, just the same as a simple money order is, under US state money transmitter laws.

— Coinbase (@coinbase) February 15, 2023

Coinbase also indirectly said that the current ongoing legal hurdles between SEC & Paxos is a part of something different matter.
A Bloomberg report noted that New York’s NYDFS agency took action against Paxos company over its unresolved relationship with Binance exchange.

Bloomberg reported that Circle complained to the NYDFS last year about Binance’s mismanagement of its own token reserves. NYDFS explained the suspension of BUSD due to several unresolved issues with Paxos’ relationship with Binance. Special emphasis on unauthorized Binance-Peg… https://t.co/wR4Z3Y6VqJ

— Wu Blockchain (@WuBlockchain) February 13, 2023

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

Circle (USDC) officer revokes all rumours of enforcement action

 

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