USDC stablecoin issuer Circle denies receiving Wells notice. That denial was documented in a tweet by CSO Dante Disparte. February 14.
Disparte wrote:
“Circle has not received a Wells notice.”
Unsubstantiated rumors circulated today suggesting that the US Securities and Exchange Commission sent a Wells notice to Circle. Service of such notice means that the regulator plans to initiate enforcement against the company.
These rumors were primarily spread by FOX Business reporter Eleanor Terret. His account has since been deleted from Twitter. Tellett said:
I agree with the words of several reliable sources on this.
Another Twitter account operated as AP_Abacus It was also tagged in Terret’s original tweet.AP_Abacus had previously suggested that the Circle was facing regulatory action from the SEC based on his own private sources, but Terret It’s unclear whether he tagged AP_Abacus and cited him as a source, or provided it to further corroborate his statement.
Circle’s denial doesn’t necessarily mean the SEC won’t initiate enforcement against the company, but that possibility doesn’t seem imminent.
The rumor appears to have been sparked by the recent NYDFS actions against Paxos, which forced the company to stop issuing the Binance USD (BUSD) stablecoin. Paxos could also face action from the SEC as it reportedly received a Wells notice.
Correction: Updated to reflect that the SEC has not yet taken action against Paxos.
