Stable coin issuer Circle USDC USD stated that the Securities and Exchange Commission is to blame for the failure of its $9 billion plans to go public through a SPAC deal.
What Happened: The group abandoned listing plans in December, telling the Financial Times that the deal fell through not because of the volatility in the criptocurrency markets last year, but because the SEC had not approved one of the largest deals involving a Special Purpose Acquisition Company.
In July 2021, when leading cryptocurrencies like Bitcoins BTC USD and Ethereum ETH USD were trading at their all-time highs, Circle agreed to merge with a SPAC set up by veteran banker Bob Diamond.
A year later, the deal fell apart as the industry saw a major downturn in the industry, including the collapse of various blue chip companies, including FTX FTT USD. The market cap of Circle's USDC has decreased to around $44 billion since then.
Circle Blames The SEC: Circle said that neither turbulent markets nor fearful investors were the cause of the abandoned deal, and that the business combination could not be completed before the end of the transaction agreement because the SEC had not yet declared our S-4 registration effective. The collapse of Bahamas-based FTX in late 2022 made it impossible for anyone to approve anything because it exposed massive cracks in how crypto groups were managed and showed the potential damage they could cause.
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