TechFlow reports, Circle's Chief Strategy Officer and Head of Global Policy, Dante Disparte, stated in response to a tweet from Fox Business journalist Eleanor Terrett that Circle has not received a Wells notice.
Previously, Terrett claimed in a tweet that the U.S. Securities and Exchange Commission (SEC) had issued Wells notices to several U.S. stablecoin companies, including Circle, instructing them to cease selling unregistered securities. After receiving clarification from Disparte, Terrett apologized and deleted the related tweet.
A "Wells notice" is an informal warning issued by the U.S. SEC before initiating civil proceedings against a publicly traded company. Companies receiving such a notice may communicate and negotiate with the SEC before formal litigation is filed.
On February 13, it was reported that SEC enforcement staff had issued a Wells notice to Paxos, indicating potential enforcement action, stating that Paxos' issuance and listing of BUSD constitutes an unregistered security, and that the SEC intends to sue Paxos for violating investor protection laws and may take enforcement measures.Original link
