Feb 15, 2023

Circle Denies Receiving “Wells Notice” for USDC Stablecoin

Circle, the issuer of USD Coin (USDC), has denied rumors that it has received a “Wells Notice” from the United States Securities and Exchange Commission (SEC) over its United States dollar-pegged stablecoin.

On Feb. 14, a now-deleted tweet from Fox Business reporter Eleanor Terrett claimed Circle had been ordered by the SEC to cease the sale of USDC due to the stablecoin being an unregistered security.

However, the rumor was swiftly dismissed by Dante Disparte, chief strategy officer and head of global policy at Circle Pay. Replying on Twitter just 15 minutes after Terrett’s tweet, Disparte said his firm has not received a Wells Notice.

A Wells Notice is a formal notice sent by the SEC informing the recipient that the agency plans to bring enforcement actions against them.

In response to Circle’s denial, Terrett said she “went with the word of several trusted sources” and apologized for the mistake. Dante accepted her apology, adding: “Alas, there is a lot of churn, swirl and rumors informing the market right now.”

The original tweet from Terrett has since been deleted and her account on Twitter was temporarily deleted but has since returned.

The rumor of Circle receiving a Wells Notice came as fears of regulatory action against stablecoin issuers have been running high this week after Paxos Trust Company, the issuer of Binance USD (BUSD), confirmed that it had received a Wells Notice alleging it failed to register the offering under federal securities laws.

When asked earlier this week whether Circle had received a similar notice from the SEC concerning USDC, Disparte told Cointelegraph: “Circle maintains that USDC is a regulated dollar digital currency issued as stored value under U.S. money transmission law.”

“Facts and circumstances in any type of regulatory action like this are all different, as are the structural and regulatory considerations with each of the cryptocurrencies that are in circulation around the world,” he added.

The web3 space has been abuzz with talk of Non-Fungible Tokens (NFTs) and the potential for crypto-based marketing and promotion. As a result, many companies are now looking to capitalize on this new opportunity, and the demand for NFT marketing agencies and web3 agencies is growing.

Circle is no exception, and the company is looking to leverage its experience in the crypto space to help businesses promote their NFTs on social media platforms such as Twitter. The company offers a range of services, from helping companies create and launch their NFTs to providing advice on how to market them effectively.

Circle has also been working to ensure that the sale of NFTs is compliant with relevant regulations. This is why the company is adamant that USDC is a regulated dollar digital currency issued as stored value under U.S. money transmission law.

For those looking to take advantage of the NFT market, Circle can provide the necessary guidance and support to ensure that the sale of NFTs is compliant with relevant laws and regulations. The company is well-positioned to help businesses maximize their potential in the web3 space, and its experience in the crypto space makes it an ideal partner for those looking to sell NFTs.

Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.