Altcoins
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Circle said its plans to go public through the SPAC deal did not materialize because the US Securities and Exchange Commission (SEC) did not approve the deal. According to the Financial Times (FT), the crypto payment firm Circle is trying to achieve the desired result, but for this the management will have to take additional measures.
Circle CEO Jeremy Aller confirmed that his firm did not receive clearance from the US Securities and Exchange Commission at the right time. Stablecoin issuer USD Coin (USDC) announced plans to go public as early as July 2021 with a valuation of $4.5 billion. The latter doubled as of February 2022 when the company agreed a deal with a special purpose acquisition company (SPAC) Concord Acquisition Corp.
“The business combination could not be completed prior to the expiration of the deal agreement because the SEC had not yet approved the S-4 filing,” Circle said. The report added that an S4 registration is the document that companies must file with the SEC in order to be allowed to list new shares.
Circle also said they didn’t expect the SEC filing process to be quick. According to experts, members of the Commission always demand “it is appropriate and reasonable to carry out a thorough and rigorous verification process.”
As it became known, Circle was not going to stop and is busy looking for alternative solutions for filing a re-application with the SEC. The firm noted that neither market turbulence nor investors’ caution was the reason for the refusal of the deal with SPAC. The problem was only with the approval from the SEC. Now the lawyers of the organization are trying to prepare more seriously for reporting to the financial regulator.
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