Crypto FUD: SEC Targets Kraken, Paxos, Could USDC Be Next?

• US regulators have taken enforcement actions on some crypto firms, such as Kraken and Paxos.
• Rumors of the SEC giving out a Wells notice to Circle, the issuer of USDC, have been circulating.
• Dante Dispaerte, the Chief Strategy Officer and Head of Global Policy at CirclePay has denied these rumors.

Regulatory Tension in Crypto Industry

The crypto community is still reeling with fear, doubt, and uncertainty (FUD) from the latest regulatory tension in the industry since U.S. regulators have taken enforcement actions on some crypto firms. Firstly, the Securities and Exchange Commission struck Kraken with a fine and halted its staking program. Also, the NYDFS and SEC have been on Paxos, the issuer of Binance USD stablecoin.

Rumors Against Stablecoins

Rumors have been flowing about the possible enforcement action on other stablecoins and their issuers. Some fingers pointed at USDC as the SEC’s latest target. But the issuer of the stablecoin, Circle, debunks such rumors against them.

Circle Counters Rumors Of Wells Notice From The SEC

There have been rumors about the SEC giving out a Wells notice to Circle, the issuer of USDC. Usually, a Wells notice from the regulator discloses its intended legal action against a company, leaving it more time to prepare a response. On February 15th Dante Dispaerte debunked these rumors stating that Circle had not received any Wells Notice from regulators yet .
Total USDC market cap rests at $41.2 billion l Source:

Apology Tweet From Journalist

The journalist Eleanor Terrett earlier posted that SEC issued a Wells Notice to Circle regarding its management and issuance of USDC but she later deleted her post and took to Twitter to apologize for her wrong information concerning Circle admitting her mistake openly .

Reactions From Crypto Community Members

Though she has admitted her mistake in SEC’s target against USDC ,the FUD is already spreading due this incident . Several reactions have were revolving around this issue while some crypto community members cited their panic sell-offofUSDC tokens due to these rumors . In response tweet one Twitter use who goes by @MotownCrypto reported selling all hisUSDC tokens due to these rumors .