Circle said it is “fully cooperating” with the investigation, but has declined to elaborate on its scope. Jeremy Allaire, CEO of Circle (Circle)
Circle Financial is being investigated by the US Securities and Exchange (SEC), the payments company revealed on Monday.
Circle, a key supporter of the USDC stablecoin, said in a regulatory filing that it received an “investigative subpoena” from the SEC’s Compliance Division in July. That subpoena requests “documents and information about some of our properties, client programs and operations,” the filing says.
“We are fully cooperating with their investigation,” Circle said at the filing, which was issued as part of Circle’s plan to go public. The documents do not detail what the SEC’s investigation focused on. Circle did not return a request for comment as of press time.
The subpoena came a month after Circle began incorporating USDC corporate holders in its first high-yield product, Circle Yield. He featured American corporations about a “well-regulated” crypto performance product in a later announcement that bragged about its licenses in Bermuda.
That was more than Coinbase, the other member of the USDC Issuing Center Consortium, was able to tout when the SEC effectively froze the exchange’s planned loan program last month. The SEC has spoken out against cryptocurrencies this year, repeatedly arguing for greater enforcement authority.
Circle first revealed the existence of the investigation in an August presentation that went almost unnoticed at the time.
It is not the firm’s first revealed run-in with the SEC as it prepares to go public on an acquisition deal for a special-purpose company that values the company at $ 4.5 billion.
Circle said in August that it agreed to pay the SEC more than $ 10 million to settle charges that its subsidiary, Poloniex, operated as an unregistered digital asset exchange.