A Circle official refuted the idea that the issuer of stablecoins has received a legal warning from the U.S. securities commission.
The issuer of USD Coin, Circle, has refuted allegations that it got a “Wells Notice” over its dollar-pegged stablecoin.
On February 14, a deleted tweet from Fox Business reporter Eleanor Terrett reported that the U.S. Securities and Exchange Commission had ordered Circle to discontinue selling USDC because the stablecoin was not registered as a security.
Dante Disparte, chief strategy officer and director of worldwide policy at Circle Pay, quickly refuted the allegation. 15 minutes after Terrett’s remark, Disparte responded on Twitter that his company had not gotten a Wells Notice.
A Wells Notification is a formal notice delivered by the SEC warning the addressee that enforcement proceedings will be taken against them.
In response to Circle’s denial, Terrett said that she relied on the word of many reliable sources and apologized for the mistake.
Dante acknowledged her apologies and added: “Currently, the market is heavily influenced by turbulence, confusion, and rumors.”
Terrett’s initial tweet has already been removed. Her Twitter account was momentarily removed but has subsequently been restored.
This week, the Paxos Trust Company, the issuer of Binance USD BUSD, sparked fears of regulatory action against stablecoin issuers indices decline $1.00, acknowledged that it had issued a Wells Notice claiming that it had violated federal securities laws by failing to register the offering.
Disparte informed Cointelegraph earlier this week that Circle has not received a comparable notification from the SEC about USDC.
“According to Circle, USDC is a regulated dollar digital currency issued as stored value in accordance with U.S. money transfer legislation.”