Coindesk.com
The company is concluding a SPAC transaction that would make it a publicly traded company.
Circle, the company behind the stablecoin USDC, has terminated its contract with specialist acquisition firm Concord Acquisition Corp., abandoning its plans to go public.
The company announced Monday that the boards of both companies approved the move. The stablecoins announced plans to list on the exchange in July 2021 with a valuation of $ 4.5 billion. The valuation later doubled when the companies changed their terms in February.
In a Twitter post, Circle CEO Jeremy Allaire said that his company did not meet the qualifications of the US Securities and Exchange Commission in time.
"I believe the SEC has been rigorous and thorough in understanding our business and the many new aspects," Alaire added. Ending the quarter with nearly $400 million in unrestricted funds.
The resignation follows similar high-profile crypto companies dropping plans to go. public through SPACs, such as trading platform eToro in July and bitcoin mining firm PrimeBlock in August.
SPACs have become commonplace for companies to list publicly in recent years. as a way of listing, the SEC said in March that they accounted for half of all IPOs in 2020-21.
The SEC announced in March that it proposed to impose "specific disclosure requirements regarding, among other things, the compensation paid to sponsors, conflicts of interest, dilution and the fairness of their business associations", signaling that such lists would be subject to greater regulatory scrutiny.
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Source : https://www.coindesk.com/business/2022/12/05/stablecoin-issuer-circle-cancels-plan-to-go-public/
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