Circle denies blaming the SEC for the closed $9 billion plan to go public

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A spokesperson for USD Coin (USDC) issuer Circle has denied reports that it blames the U.S. Securities and Exchange Commission (SEC) for its failed $9 billion plan to go public in December.

The stablecoin issuer’s representative was responding to a Jan. 25 Financial Times article that characterized Circle as blaming the securities regulator for its derailed listing following dragging its feet over the approval of a merger agreement.

However, a Circle spokesperson clarified to Cointelegraph that this was not the case and that it did not blame the SEC for the termination of its merger agreement.

Circle has not and does not blame the SEC for anything related to the mutual termination of our SPAC merger agreement with Concord, and any statement to the contrary is inaccurate.”

Circles’ listing on the New York Stock Exchange (NYSE) was tied to their ability to combine with Concord, a company created by banker Bob Diamond through a special purpose acquisition company agreement, also known as a PSPC agreement.

However, according to the FT, Circle said the merger was not completed because the SEC failed to declare the related S-4 filing effective in time, which would cause the deal to expire on December 10. .

The Circles spokesperson, however, referenced previous statements made by the company in December, noting that the deal was simply cancelled.

Concord had not publicly disclosed the reason for the failed business combination, but filed a Form 8-K with the SEC on Dec. 5 the same day the deal was announced to be terminated, which revealed that he was being delisted by the NYSE due to an abnormally low level. trade price levels.

Related: Court to Hear Oral Arguments in Grayscale Lawsuit Against SEC in March

Indeed, in a Dec. 5 tweet, Circle co-founder and CEO Jeremy Allaire had only positive words regarding the SEC, and noted that while it was disappointing that they didn’t have could not complete their qualification in time, he still planned to become a public-listed company.

2/ From my point of view, I believe that the SEC has been rigorous and thorough in understanding our business and many new aspects of this industry. This kind of scrutiny is necessary to ultimately ensure trust, transparency, and accountability for big crypto firms.

— Jeremy Allaire (@jerallaire) December 5, 2022

As Cointelegraph previously reported, the deal was first announced in July 2021 at a valuation of $4.5 billion, before doubling in February 2022 when it was revised to $9 billion.

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