The USDC Issuer Circle says the SEC is the reason why DailyCoin’s $9 billion publicly traded plans failed

The USDC Issuer Circle says the SEC is the reason why $9 billion plans to go public failed
  • Circle said it was neither difficult market conditions nor shaky investors that prevented it from going public through SPAC’s merger with the former. Barclays (LON): Concord CEO Bob Diamond.
  • The company said the SEC did not approve its registration in a timely manner. Circle waited 15 months for its registration with the Securities and Exchange Commission to become “effective.”
  • Circle canceled plans to go public in December. The value of the deal was $9 billion at the time.

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 the Financial Times, Circle said that neither turbulent market conditions nor fearful investors prevented it from going public.

“The business combination cannot be completed before the transaction agreement expires because the SEC has not yet declared our S-4 filing to be “effective.” said the circle. “We never expected the SEC filing process to be so quick and easy. We are a new company in a new 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 was abandoned last month amid market jitters 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.

on the flip side

  • The department may try to make it public in the future.
  • It is not surprising that the SEC is taking its time with crypto companies that want to go public given the recently exposed fraud in the industry.

Why should you bother

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.

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