Last week, the SEC dealt a major blow to Kraken and its crypto staking program. Rumors are now swirling that USDC token issuer Circle is its next target. Circle was quick to refute these allegations and provided clarifications.
What’s going on between the SEC and Circle?
The Securities Exchange Commissions (SEC) is waging an all-out war against cryptocurrencies right now. The US stock market watchdog brought Kraken to his knees last week. The exchange has agreed to shut down its cryptocurrency staking service. He also agrees to pay $30 million in penalties. All of this will go towards settling SEC accusations that Kraken failed to register its staking program. Other crypto platforms would be in the sights of the SEC. It is in this context that we learned by Crypto Potato Fox reporter Eleanor Terrett announced that Circle has received notice from the SEC. This notice means that the SEC will initiate the same type of procedure against Circle.
However, CirclePay Chief Strategy and Policy Officer Dante Disparte has denied these rumours. The journalist apologized immediately, returning to her remarks.
Is the SEC at war with stablecoins?
The institution that regulates financial flows in the United States thinks that staking services and stablecoins are securities. In a statement released last year, SEC Chairman Gary Gensler further said: Stablecoins have characteristics similar to and potentially compete with money market funds, other securities and bank deposits, and raise important political questions. »
” As noted in the report of the President’s Working Group on Stablecoins, it is important to ensure that we have appropriate security and soundness protections, investor protections, and safeguards against illicit activity. he added.
The SEC has certainly just dealt a fatal blow to the BUSD stablecoin. Its value plummeted by almost $900 million in a matter of days. Will Circle’s USDC be able to survive the war waged by the SEC ?
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