Circle assures cooperation in ongoing subpoena by SEC

Circle assures cooperation in ongoing subpoena by SEC 


The US Securities and Exchange Commission has summoned Circle, the company behind the world’s second-largest stablecoin USD Coin.


The SEC, from its Enforcement Division, had issued an “investigative subpoena” to Circle in July, as per an official statement by Circle on October 5.


Circle has announced that it would show full cooperation with the SEC. It shared that the SEC had issued the subpoena requesting information regarding Circle’s holdings, operations and customer programs.


The filing has been tagged as part of its plan to go public through a special-purpose acquisition vehicle in a merger with the Concord Acquisition Corp. The firm is currently valued at $4.5 billion.


Circle had issued an identical statement back in August when the SEC’s investigations were ongoing into Poloniex, Circle’s former subsidiary. In the same month, Circle had agreed to pay the SEC a fine amount of $10 million for its charges against Poloniex that was operating as an unregistered cryptocurrency exchange.


In July, Circle had revealed through a report that 61 per cent of USDC’s reserves were reserved in cash and cash equivalents while the remainder were held in treasuries, commercial paper accounts and bonds.


Again in September, the SEC had threatened to sue USDC-issuing Coinbase, which is a member of Centre Consortium. The threat was a result of Coinbase’s proposed lending product that was sought to yield interest rates for select holders of USDC.

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