Stablecoin Issuer Circle Denies Rumors It Received SEC Wells Notice

Circle, a peer-to-peer payments technology company that manages a popular stablecoin known as USD Coin (USDC), has denied rumors about receiving the Wells Notice from the US Securities and Exchange Commission (SEC).

The news was revealed by Fox Business reporter Eleanor Terrett on February 14th. In a now-deleted tweet, Eleanor Terret claimed that US SEC ordered Circle to stop selling USD Coin (USDC) as it is unregistered security.

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Shortly after the tweet entered the Twitter space, the rumor was debunked by Circle’s Chief Strategy Officer (CSO) and Head of Global Policy, Dante Disparte. In a short tweet, the man emphasized that Circle has not received a Wells Notice from the SEC.

It is worth noting that Wells Notice is a letter sent by the US Securities and Exchange Commission to individuals or firms, informing them about the charges the US regulator intends to bring against the respondent. 

The company targeted by the US SEC has 30 days to respond to allegations, providing arguments why charges shouldn’t be brought.

In a separate tweet, a Fox Business reporter apologized for the mistake, noting that she “went with the word of several trusted sources.”

Circles’ Dante Disparte accepted the apology, claiming that “there is a lot of churn, swirl, and rumors informing the market right now.”

Since then, Terret issued a separate Tweet, correcting the mistake and noting that she strives “to get things right but also wants to admit when <she’s> wrong.”

Earlier this week, when asked about whether SEC sent Wells Notice to Circle, Dante Disparte noted:

Circle maintains that USDC is a regulated dollar digital currency issued as stored value under US 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.

The allegations that Circle received SEC’s Wells Notice over its USDC comes after the news broke that another stablecoin issuer, Paxos, received SEC’s letter over its Binance USD (BUSD) stablecoin.