SEC investigates creator of USDC

The United States Securities and Exchange Commission (SEC) opened an investigation into the fintech Circle, known for being the creator of the stablecoin USD Coin, the second largest stable-value cryptocurrency on the market.

“In July 2021 we received an investigation subpoena from the SEC’s compliance division requesting documents and information about some of our properties, client programs and operations”, the company said in a document submitted to the regulator as part of its process to go public.

The firm stressed that it is cooperating with the authorities, although it has not disclosed what type of investigation is being carried out or has specified what exactly the SEC is looking for.

Circle is the creator of the Center consortium, the body in charge of managing the crypto asset, whose value is backed by the dollar, so that each unit of said cryptocurrency always has a value of one dollar.

Center was subsequently joined by other companies such as cryptocurrency exchange Coinbase and cryptocurrency mining equipment maker Bitmain. USDC is the second largest stablecoin on the market, only behind tether.

K. Tovar

Source: Bloomberg