The company managed by Jeremy Allaire said that market volatility had nothing to do with the termination.
Circle, the firm behind the USDC stablecoin, has attributed its failed efforts to go public to the US Securities and Exchange Commission (SEC).
According to a recent FT story, the regulatory body failed to approve the $9 billion transaction. This comes a month after its CEO Jeremy Allaire announced the termination of the company’s deal with Concord Acquisition Corp., therefore abandoning its aim to go public. The executive then said that Circle had not met the SEC’s “qualifying” requirements on time.
In July 2021, with a value of $4.5 billion, Circle stated that it will go public and negotiate a new partnership with SPAC Concord Acquisition Corp. A few months later, when its value had risen to $9 billion, it was revised. The issuer of USDC then announced that the company will go public by December 2022. Both members of USDC’s Centre Consortium would have been publicly traded.
As a result of the crypto market’s decline, however, bankruptcies erupted, creating substantial turbulence in the area. Contrarily, Circle said that unfavourable market sentiment was not a role in the cancellation of its Spac. The business issued a statement stating,
A significant amount of time was wasted between Circle’s original submission and December 2022, when the arrangement expired, as a consequence of regulatory ambiguity surrounding the activities of US watchdogs with many enterprises in the industry. The following downfall of FTX eliminated any possibility of acceptance by cryptocurrency enterprises.
The Circle transaction would have ranked among the world’s largest involving a SPAC. The collapse is one of the several setbacks that the cryptocurrency business has experienced over the years since its relationship with the SEC has not recovered. However, this is not the first time a high-profile project has failed.
For instance, 10x Capital Venture Acquisition Corp terminated a $1.25 billion merger agreement with Prime Blockchain, a crypto mining startup. Bullish Global and Far Peak Acquisition Corp were unable to get SEC clearance for similar transactions.
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