Regulation News - The SEC is investigating Circle’s operation.
- The SEC’s Enforcement Division asked Circle to provide documents and information regarding its holdings, customers’ programs, and more.
- Circle has confirmed that it will cooperate with the SEC amid the investigation.
The US Securities and Exchange Commission (SEC) is currently investigating Circle’s operations — the company behind USDC stablecoin. According to a regulatory filing revealed by Circle, the SEC Enforcement Division issued the probe in July 2021.
To clarify, the regulator asked Circle to provide legalized documents and information of its holdings, customers’ programs, and its operation. Confirming the matter, Circle has noted that they would cooperate hand in hand with the SEC amid the ongoing audit.
In addition, in July 2021, we received an investigative subpoena from the SEC Enforcement Division requesting documents and information regarding certain of our holdings, customer programs, and operations. We are cooperating fully with their investigation.
Similar to this investigation, back in August, Circle released identical statements when SEC began an investigation on its subsidiary Poloniex. In the same month, Circle agreed that it will pay a fine of $10 million to SEC based on charges that Poloniex operates as an unregistered crypto exchange.
Furthermore, Circle disclosed that over 61% of USDC reserves were held in cash and cash equivalents where the remaining are in commercial paper accounts, treasuries, and bonds.
Along with this, Circle is esteemed to go public under a special-purpose acquisition vehicle. In essence, the company hopes to achieve this milestone by partnering with Concord Acquisition Corp with the firm’s $4.5 billion value.
Source: https://coinquora.com/sec-orders-circle-to-provide-documents-of-its-crypto-services/
