Stablecoin Issuer Circle Blames SEC for Canceling B Plans to Go Public

Stablecoin Issuer Circle Blames SEC for Canceling $9B Plans to Go Public

Circle’s plans to go public last year through a $9 billion SPAC merger failed due to inaction from the US Securities and Exchange Commission, the crypto company claims.

The plan between Circle and Concord Acquisition, a special purpose buyout company founded by former Barclays CEO Bob Diamond, was. left last month amid market turmoil afterwards the collapse of the cryptocurrency exchange FTX.

Circle is the second largest stablecoin issuer, USDCwhich currently has a market cap of $43.7 billion, for CoinGecko.

As reported by financial timeCircle now says the main reason for the merger’s failure was the SEC rather than a market downturn or wavering investors.

The regulator allegedly did not approve the filing of an S-4 agreement, which allows companies to issue new shares, before the agreement expires.

“We did not expect the SEC filing process to be so quick and easy,” Circle said. “We are a new company in a new industry”.

But 15 months after Circle first filed with the SEC, the deal collapsed before the regulator was satisfied enough to give approval.

The SEC and the cryptocurrency industry

FTX aside, the SEC has shown reluctance towards the cryptocurrency industry as a whole.

Although many Bitcoin futures Exchange Traded Funds (ETFs) are now approved, look at cryptocurrency ETFs, such as the one suggested by Grayscale– so far they have all been rejected or blocked.

And if it wasn’t for refusal after refusal or allegedly being slow to deal with the growing industry, the Commission has also had a difficult task in implementation.

On January 12, SEC to accuse against cryptocurrency exchange Gemini for failing to register its Pata app, operated by cryptocurrency broker Genesis, with the regulator.

“We argue that Genesis and Gemini offered unregistered securities to the public, circumventing disclosure requirements designed to protect investors,” SEC Chairman Gary Gensler said at the time.

Get the latest news on cryptocurrency, get daily updates in your inbox.