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SEC initiates investigation against Circle

Securities and Exchange Commission (SEC) initiated an investigation against USDC stablecoin backer Circle Financial. This is stated in the documents, published on October 4.

Circle received a subpoena in July 2021 demanding "documents and information regarding certain assets, client programs and transactions," according to a new Form S-4.

Circle emphasized that it was "fully cooperating" with the SEC's investigation. The documents did not specify its scope or details.

Circle previously closed a $440 million funding round with investments from FTX, Digital Currency Group, Fidelity Management, Valor Capital Group and other venture capital firms.

In July it became known about Circle's plans to enter the stock market.

In August, Circle CEO Jeremy Allaire said Circle would become a "national full-reserve digital currency commercial bank". Its operations will comply with the Federal Reserve, the U.S. Treasury, the OCC and the FDIC.

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