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Circle, the second-largest issuer of the USDC stablecoin, blamed the US Securities and Exchange Commission (SEC) for the failed plans to go public.
According to Financial timingCircle says that it wasn’t volatile market conditions or frightened 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 that must be approved by the SEC 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 has plans to go public by merging with Concord, a special purpose acquisition company (SPAC) run by former Barclays CEO Bob Diamond. The deal was valued at around $9 billion before left last month amidst the fear in the market after the fall of FTX.
USDC Circle is the second largest stablecoin with a market cap of $43 billion, according to data from CoinGecko.
Circle is one of the largest crypto-focused companies in the world. Its USDC plays a huge role in the industry and is one of the most widely used stablecoins. If the company manages to go public, it will be subject to stricter regulatory scrutiny, which will probably be a good thing for crypto investors and users alike.
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