Circle blames the Saudi Electricity Company for the failure of the Concord Spall deal
Circle finally disclosed the SEC’s refusal to greenlight its highly publicized special purpose acquisition company (SPAC) deal with Concord, which led to the failed $9 billion merger last year.
The SEC crushed SPAC plans for Circle
Circle, the issuer of USDC, the world’s second-largest stablecoin, told the Financial Times that the much-talked-about and highly publicized SPAC deal with Concord Acquisition did not materialize due to the unwillingness of the US Securities and Exchange Commission (SEC). ) to approve the deposit.
It should be noted that Circle first announced plans to become a publicly listed company through the merger of SPAC with Concord Corporation in July 2021. However, the deal faced two procedural hurdles, which led to the mutual termination of the $9 billion agreement last December by both companies. .
“We are disappointed that the proposed deal has expired. However, becoming a public company remains part of Circle’s core strategy to promote trust and transparency, which has never been more important.”
Jeremy Allaire, Chief Executive Officer.
Fast forward to January, and Circle has made it clear that the failure of the SPAC deal was not the result of any form of conflict with Concord or the spread of FUD caused by the FTX collapse, but rather due to the regulator’s dreaded failure to approve an S-4 filing before the transaction agreement between the two companies expired. .
SEC – a nightmare for web companies 3
While the debate over who should be the primary regulator (SEC or CFTC) for the burgeoning Web 3 space continues, the SEC has continued to wield the sledgehammer against cryptocurrency market participants who run counter to its laws.
In 2022 alone, the SEC staged 30 enforcement actions against crypto market participants, which is a 50% increase from 2021.
Earlier this month, leading crypto lender Nexo reached a historic multi-million dollar settlement with the Securities and Exchange Commission to offer its products to US residents.