Circle: SEC has no plans to attack USDC

Stablecoin issuer USDC Circle has denied a Fox Business reporter claiming it received an official warning that the SEC plans to take enforcement action against it.

Early on the morning of Feb. 15, Fox Business journalist Eleanor Terrett tweeted that the US Securities and Exchange Commission (SEC) is cracking down on stablecoin issuers. Companies have been ordered to stop selling “unregistered securities,” she said.

Specifically, in a now-deleted tweet, Terrett alleged that the SEC sent Wells notices β€” a formal warning informing the recipient that the agency plans to take enforcement action against them β€” to several stablecoin issuers operating in the United States, including Circle.

Terrett’s tweet was picked up by several cryptocurrency media at once and soon caused a lot of concern among members of the community. Some of them even sold their USDC reserves, waiting for Circle to be reviewed by the SEC and the ban on issuing a stablecoin, following the example of Paxos.

The spread of rumors about Circle’s troubles caused an immediate reaction her guides. Just 15 minutes after the tweet, Terrett, director of strategy and head of global policy at Circle Pay, Dante Disparte, said his company had not received any notice from the regulator and the Fox Business reporter’s news was untrue.

In response, a Fox journalist acknowledged her mistake, apologized on Twitter, deleted the controversial post and wrote a rebuttal. Subsequently, Eleanor Terrett’s Twitter account was briefly deactivated.

Commenting on the aftermath of the event, most members of the crypto community were not surprised by the confusion over the alleged Wells notice to Circle. In their opinion, the events of the last week – the staking ban for the Kraken exchange and the ban on the issuance of BUSD stablecoins for Paxos – have created a favorable environment in the market for nurturing negative expectations and rumors.

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