Circle Criticizes SEC Over Approval Leading to Fallout of SPAC Deal

  • Rather than the market slump or uncertain investors, Circle now blames the SEC.
  • Aside from FTX, the SEC has been cautious about the whole cryptocurrency sector.

USDC stablecoin issuer Circle claims the SEC’s inactivity caused it to be unable to go public. Via a $9 billion SPAC merger last year. In the wake of the FTX cryptocurrency exchange’s collapse last month. A planned merger between Circle and Concord Acquisition, a special-purpose acquisition firm established by former Barclays CEO Bob Diamond, was scrapped.

According to CMC, Circle is the issuer of USDC. The second biggest stablecoin, which has a market worth of $43.7 billion. Rather than the market slump or uncertain investors, Circle now blames the SEC, as reported by The Financial Times. The S-4 registration is necessary for the issuance of additional shares. Reportedly did not get regulatory approval in time before the agreement’s expiry.

Stringent Approach by SEC Over Time

The SEC registration procedure was never something it anticipated would be simple, said Circle.  However, the SEC was not pleased enough to provide permission before the transaction expired. Which was 15 months after Circle first filed with the agency.

Aside from FTX, the SEC has been cautious about the whole cryptocurrency sector. Grayscale’s planned spot crypto ETF, along with others like it, have all been denied or postponed, despite the fact that multiple Bitcoin futures-based ETFs have already been authorized.

In addition, the Commission has been active on the enforcement front, despite the widespread perception of its inaction or repeated rejections of proposals meant to rein in the expanding industry. The SEC charged cryptocurrency exchange Gemini on January 12 for failing to register the Genesis-powered Earn programme.

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