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USDC Issuer Circle Forges Ahead With Public Listing Plans Despite SEC’s Strong Arm Tactics

Circle remains steadfast in its commitment to go public despite the recent regulatory crackdown by the U.S. SEC.

Key Points

  • Circle, the organization behind the popular USD Coin (USDC), is forging ahead with its plans to go public.
  • Although the company has not yet set a timeline for the IPO, a spokesperson has confirmed that they are taking active steps.
  • Despite the rigorous and thorough review process conducted by the SEC, Circle has not placed blame on the regulatory body

Circle, the firm responsible for the stablecoin USDC, is reportedly pushing through with its plans to go public, despite the recent SEC actions. Although the company has yet to finalize a timeline, a spokesperson has confirmed that they will be taking necessary steps to proceed with their IPO plans.

This development comes after Circle terminated its agreement with Concord Acquisition Corp., a special-purpose acquisition company, and withdrew its plans to go public. The company’s decision to do so follows a trend of other prominent crypto firms, including eToro and PrimeBlock, canceling their plans to go public via a SPAC. Despite these setbacks, Circle remains determined to pursue its public listing plans and bring its stablecoin to the forefront of the financial market.

The Circle-SEC Disagreement 

In the midst of the crypto frenzy of 2021, Circle made headlines when it revealed its intention to go public in July of that year. With a reported valuation of a staggering $400 million in unrestricted cash, the company’s plan was to merge with a special purpose acquisition company (SPAC) in a deal worth $9 billion. However, it seems that the Securities and Exchange Commission (SEC) had other ideas.

According to reports, the SEC put a halt to Circle’s plans to go public, refusing to sign off on the company’s proposal. Despite the setback, Circle has taken a diplomatic approach, stating that it believes a thorough and rigorous review process by the SEC is necessary.

Circle, the fintech company, has been transparent about the failure of its SPAC merger agreement with Concord. The CEO, Jeremy Allaire, has acknowledged that the company did not meet the SEC’s qualification deadline, which led to the termination of the agreement in December 2022. 

Despite this setback, Circle’s executives had previously emphasized the importance of going public as part of the company’s strategy. However, they have yet to determine a specific timeline for their public listing. A spokesperson for Circle stated that they will take the necessary steps to go public as soon as possible but are not prepared to set a deadline.

Despite the uncertainty surrounding Circle’s public listing, the company remains confident in its ability to navigate the SEC process. Jeremy Allaire recently stated that Circle holds a competitive advantage over its rivals. As Circle continues its journey towards going public, it remains to be seen how the company will fare in the competitive fintech landscape.

Other Crypto Players to Follow Circle

As the cryptocurrency market continues to gain traction, companies are starting to look towards public listings in the US. Apart from Circle, Kraken, a popular crypto exchange, has also hinted at the possibility in their recent job posting. The company is placing a strong emphasis on “public company preparedness” and is actively seeking candidates with “public company reporting experience” to join their legal team.

Furthermore, Galaxy Digital, led by Mike Novogratz, had been preparing for an IPO last year. However, with the recent SEC action, it remains uncertain whether the company will proceed. Novogratz has hinted that the company may shift its focus to overseas customers instead. As the world of cryptocurrency continues to evolve, it will be interesting to see which companies will successfully navigate the complex landscape and make their mark in the public markets.

End Notes

In the midst of the SEC’s crackdown on crypto companies, Circle is forging ahead with its plans to go public. Despite the regulatory hurdles, the company is determined to see its IPO plans through to fruition. While the timeline for the public listing has yet to be determined, Circle is taking proactive steps to ensure that the process moves forward smoothly.