Circle, the issuer of the second largest USDC stablecoin, blames the US Securities and Exchange Commission (SEC) for the failed plans to go public.
according to financial timesCircle said it was neither turbulent market conditions nor fearful investors that prevented it from going public.
“The business combination could not be consummated before the expiration of the transaction agreement because the SEC had not yet declared our S-4 registration ‘effective’,” Circle said. “We never expected the SEC registration process to be quick and easy. We’re a novel company in a novel industry.”
An S-4 registration is a document required for approval by the Securities and Exchange Commission in order for a company to issue new shares. In Circle’s case, the company waited 15 months for SEC approval before the registration expired.
Circle had plans to go public by merging with Concord, a special purpose acquisition company (SPAC) run by former Barclays CEO Bob Diamond. The deal was worth about $9 billion before it took place It was abandoned last month Amid market fears after the collapse of FTX.
Circle’s USDC is the second largest stablecoin with a market cap of $43 billion, according to data From CoinGecko.
Circle is one of the largest cryptocurrency-focused companies in the world. USDC plays a huge role in the industry and is one of the most used stablecoins. If the company can go public, it will be subject to more regulatory scrutiny, which should be a good thing for cryptocurrency investors and users.