Rumors swirled on Twitter that the stablecoin issuer received a litigation notice from the U.S. securities regulator, but a Circle executive rebuffed the claim.
USD coins USDC ($1.00) Issuer Circle has denied rumors that it has received a “Wells” rating on the stablecoin pegged to the US dollar.
On Feb. 14, a now-deleted tweet from Fox Business reporter Eleanor Terrett said that the United States Securities and Exchange Commission had ordered Circle to stop selling USDC because the stablecoin was an anonymous cryptocurrency.
However, Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle Pay quickly dismissed the rumors. Responding on Twitter just 15 minutes after Terrett’s tweet, Disparte said his company had not received Wells’ notice.
A Wells Notice is an official notice sent by the SEC informing the recipient that the company is considering taking legal action against them. In response to Circle’s denial, Terrett said he “accepted the wording of several reliable sources” and apologized for the error.
Dante accepted his apology, adding, “Alas, there are a lot of chaos, confusion, and rumors telling the market right now.”
Terrett’s original tweet has since been deleted. His Twitter account was temporarily deleted but is back.
Fears of legal action against virtual currency providers were high this week after Paxos Trust Company, a Binance USD provider.
BUSD ($1.00), is believed to have received a notice from Wells accusing him of failing to register the grant under federal securities laws. Asked earlier this week whether Circle had received a similar notice from the SEC regarding USDC, Disparte told Cointelegraph:
“Circle argues that USDC is a dollar-denominated digital currency issued as a protected value under the United States Money Transfer Act.”
“The facts and circumstances of each type of regulatory system like this are different, as are the regulatory and regulatory frameworks in each of the cryptocurrencies distributed around the world,” he added.
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