At night, another FUD wave was launched on crypto twitter about stablecoins. Fox reporter Eleanor Terrett wrote that Circle, which issues the popular USDC stablecoin, received Wells’ notice from the US Securities and Exchange Commission (SEC).
The Wells Notice is used by the regulator to inform companies of planned enforcement actions. Roughly speaking, right before going directly to court and calling a stablecoin a security.
The cryptans had time to get scared, but the issuer of the stablecoin, represented by the director of strategy for Circle Pay, Dante Disparte, hastened reassure everyone: all this is nothing more than a duck, no notifications from SEC Circle have been received.
.@circle has not received a Wells notice. https://t.co/lE74zHVLka
— Dante Disparte (@ddisparte) February 14, 2023
In response to Circle’s rebuttal, Terrett wrote that she “believed several reliable sources” and apologized for her mistake. The misleading tweet has been removed.
But Circle colleagues from Paxos were much less fortunate. The company did receive on Monday from the SEC
black mark Wells notice on the BUSD stablecoin. Immediately thereafter, the New York State Department of Financial Services (NYDFS) ordered Paxos to stop issuing BUSD.
Paxos representatives confirmed that they are breaking off cooperation with the Binance cryptocurrency exchange on issuing a stablecoin, and will stop issuing new stablecoins from February 21.
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