Circle Denies Receiving 'Wells Notice' Over USDC

The business that generates USD Coin (USDC), Circle, has denied allegations that it has been served with a "Wells Notice" in connection with its dollar-pegged stablecoin. These allegations have been contested by the company that issues USD Coin (USDC).

On February 14, a tweet by a Fox Business reporter named Eleanor Terrett that has since been deleted claimed that the United States Securities and Exchange Commission had ordered Circle to stop the sale of USDC due to the fact that the stablecoin was an unregistered security. The tweet claimed that the SEC had ordered Circle to stop selling USDC due to the fact that the stablecoin was an unregistered security. After the reporter was called out on her fraudulent statements, the tweet was removed and she apologized. The tweet was taken down at a later point in time.

On the other hand, Dante Disparte, chief strategy officer and director of foreign policy at Circle Pay, promptly and aggressively replied to the claim by disputing its legitimacy. He said that Circle Pay is not responsible for the claim. Just 15 minutes after Terrett's post, Disparte responded to Terrett's allegation on Twitter by declaring that his company has not been served with a Wells Notice. This statement came in response to Terrett's tweet. This remark was made in reaction to the allegation that Terrett made before.

The Securities and Exchange Commission (SEC) will send recipients a formal communication that is known as a "Wells Notice" in order to alert them of its plan to commence enforcement proceedings against them. The receivers of this notice will be informed that the agency intends to take action against them as a result of this notice.

Terrett said that she "went with the word of multiple trustworthy sources" and apologized for the error in her reaction to Circle's denial of the claim. Circle had stated that the allegation was false. In addition to this, she said that she "went with the word of several credible sources."