US SEC will soon release notice for stablecoin companies: Report
Reportedly the US Securities regulatory body is planning to release wells notice to the Stablecoin issuer companies.
The United States Securities and Exchange Commission (SEC) is a leading financial spot market regulatory body in the US. Because of the absence of a full version of Crypto laws in the US, the SEC remains always strict against crypto companies. The SEC agency stated that they rules on the crypto assets on behalf of their nature, instead of a blockchain technology point of view because changing technology can’t change the nature class of that asset.
On 10 Feb 2023, Andrew, the founder of X3, informed his Twitter followers that the SEC agency may soon release “Well notice” for the stablecoin companies like Circle, and Paxos.
According to Andrew, Circle & Paxos will be the top name in the upcoming wells notice from the SEC agency.
Andrew also explained that a Wells notice is basically a report prepared by the regulatory body on behalf of their investigation. In short, the SEC agency notified the stablecoin companies over their possible violation of the securities act or other laws.
Circle vs Tether
In the present time, Circle’ USDC is a top trusted stablecoin which is standing at the second rank in the crypto sector just after Tether (USDT).
After the collapse of TerraUSD stablecoin in May 2022, Circle released many details about the back-end reserved funds but in that situation Tether failed to provide significant reports about its reserves.
Recently Tether, USDT issuer, confirmed that the company generated $700 million profit in the fourth quarter of last year.
In the last 5-6 months, Tether company published many reports to confirm that the company was continuously reducing its commercial debt paper.
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