Circle Executive Quashes Rumor About Receiving Wells Notice From The SEC

• Circle’s Chief Strategy Officer has denied rumors about his firm receiving a Wells notice from the SEC.
• Fox reported Eleanor Terrett initially broke the news of the alleged Wells notice to the USDC issuer.
• A Wells notice informs subjects of enforcement actions about potential charges that may be brought against them.

Rumors about Circle receiving a Wells notice from the U.S Securities and Exchange Commission have been quashed by an executive of the USD Coin issuer. Dante Disparte, the Chief Strategy Officer and Head of Global Policy at Circle, denied the rumor about his company receiving a Wells notice from the securities regulator. A Wells notice is issued by the SEC to inform companies and individuals about charges that may be filed against them.

Fox Journalist claimed that Circle was issued a wells notice

Eleanor Terrett, a journalist at Fox Business, recently took to Twitter to share a scoop about a further crackdown by the SEC on crypto firms. In the now-deleted tweet, Terrett claimed that the SEC had issued Wells notices to multiple stablecoin firms operating in the United States, including USDC issuer Circle. According to her, these firms had been ordered to cease and desist sales of “unregistered securities”.

The tweet was picked up by multiple news providers on Twitter and soon gained traction in the crypto community. The rumor prompted a response from the Circle executive. The tweet was subsequently deleted and the account was briefly deactivated. The Fox journalist tweeted a correction a short while ago, acknowledging her mistake. “I went with the word of several trusted sources on this. I apologize for the mistake,” she added. Terrett has grown popular for her extensive coverage of the SEC’s lawsuit against Ripple.

Several users on crypto Twitter were not amused by the confusion over the alleged Wells notice to Circle. One of them shared that he had sold his USDC anticipating regulatory scrutiny of Circle following the SEC’s notice.