The United States Securities and Exchange Commission (SEC) has been subpoenaing the Circle, the company which handles one of the largest stablecoin in the crypto industry, USD coin.
Circle has registered a regulatory filing on October 4, according to which, SEC’s enforcement division had released an “investigative subpoena” for the company in July.
After receiving the request, the USDC stablecoin company said that it is ready for any cooperation needed and is in support of regulators.
The company said, “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.”
In August, when SEC was thoroughly investigating its operations of former subsidiary Poloniex, the company had issued a similar statement. SEC has charged the Circle a penalty of $10 million against its operations as a cryptocurrency exchange without registration. The CIrcle agreed to pay the amount.
SEC is not leaving Circle alone
The recent filing by Circle is under the plan of going public after a special-purpose investment vehicle through a merger with a $4.5 billion valued Concord Acquisition Corporation.
During the end of July, the company had released a set of data showing that 61% of USDC’s reserves were in the form of cash and cash equivalents. It also added that the rest of the reserve was in the form of bonds, treasuries, and commercial paper accounts.
The SEC is taking serious steps against stablecoin companies by bringing strict regulations for the crypto world. In September, SEC warned the USDC-issuing Centre Consortium member Coinbase and threatened to sue over its plan on bringing a lending product that would yield interest rates for selected USDC holders.
Recently, many countries are also planning on bringing a pack of regulations to avoid money laundering and tax evasion.
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