• Recent regulatory tension in the crypto industry has led to enforcement actions on some crypto firms, such as Kraken and Paxos.
• Rumors have circulated that the SEC may be taking action against USDC, another stablecoin.
• Dante Dispaerte, Chief Strategy Officer of CirclePay, debunked these rumors and stated that Circle had not received a Wells Notice from the SEC.
Regulatory Tension In Crypto Industry
The crypto community is still feeling the effects of recent regulatory tension in the industry, since U.S. regulators have taken enforcement actions on some crypto firms. Specifically, Kraken was fined by the Securities and Exchange Commission (SEC) and had its staking program halted; meanwhile, both the New York Department of Financial Services (NYDFS) and SEC have targeted Paxos, issuer of Binance USD stablecoin.
Rumors Of SEC Action Against USDC
With regulatory scrutiny looming large in crypto markets, rumors began to circulate that the SEC might be targeting USDC stablecoin – issued by Circle – next. Fox News journalist Eleanor Terrett even tweeted about an alleged Wells Notice from the regulator to Circle regarding management and issuance of USDC stablecoin; however she later deleted this tweet and apologized for her mistake.
Circle Counters Rumors
Dante Dispaerte – Chief Strategy Officer at CirclePay – took to Twitter to counter these rumors against them; he said that they had not received any sort of notice from the SEC yet. The total market cap for USDC at time of writing was $41.2 billion according to data from Tradingview.com
Panic Sell-Offs Amid Rumors
Despite Terrett’s apology for her wrong post concerning Circle, FUD continues to spread across crypto markets with many users reporting panic sell-offs due to fear over potential action from regulators against stablecoins like USDC.
It’s important for traders to remain vigilant when it comes to news circulating around token issuers or other regulatory news; however it is also necessary not to succumb immediately to FUD without verifying facts first!