Circle's workforce grows as US stablecoin regulations loom.
Key Takeaways
- Circle's IPO continues as planned without additional funding needs.
- Tether, Circle's competing stablecoin issuer, faces allegations of facilitating illegal activities.
Circle is financially strong and well on track to pursue a public listing without needing to raise additional funds, said Circle CEO Jeremy Allaire in a recent interview with Bloomberg.
“We’re in a financially strong position and have been able to build a very solid business, and we’re currently not seeking any funding,” said Allaire in a recent interview with Bloomberg.
The company behind the second-largest stablecoin USDC filed with the SEC earlier this year in a second bid to go public through an IPO. Its initial attempt was unsuccessful due to regulatory hurdles and crypto market turmoil following the collapse of FTX.
Circle’s IPO is expected to take place after the SEC completes its review. However, the ultimate success of Circle’s ambitious bid may depend on the SEC’s classification of USDC, its flagship product.
A June report from Barron’s said that the SEC raised concerns regarding whether USDC should be classified as a security, which could impact Circle’s operations and its ability to go public. If USDC is deemed a security, Circle would face increased regulatory requirements and costs, which could delay its IPO plans.
Allaire said plans to go public remain robust as Circle expands its workforce in anticipation of new US regulations on stablecoins.
The US is working towards establishing a regulatory framework for stablecoins. While there have been some proposed bills, such as the Lummis-Gillibrand Payment Stablecoin Act and the Clarity for Payment Stablecoins Act, these have not yet been passed into law.
Still, Allaire remains optimistic about potential legislative developments post-election. The US is ten days away from one of the most important events, and whoever wins the White House is expected to bring clarity to the emerging crypto industry and foster its development.
While Circle stays focused on its IPO plans, Tether, the force behind the world’s leading stablecoin USDT, reportedly faces scrutiny from US authorities over allegations of facilitating illegal activities.
Tether’s CEO, Paolo Ardoino, has denied those claims. The firm itself has reaffirmed its active collaboration with law enforcement agencies to combat illicit activities associated with its stablecoin.
Circle’s EURC is the largest euro-denominated stablecoin
Circle’s euro-backed stablecoin, EURC, has reached a record high supply of 91.8 million tokens, according to data from CoinGecko. EURC’s market cap is nearing $100 million with growth driven by strong activities on Ethereum’s layer 2 Base.
Since achieving MiCA compliance, EURC has seen substantial growth, increasing more than 2.5 times, according to Patrick Hansen, Circle Senior Director of EU Strategy and Policy. The growth has positioned EURC as “the largest euro stablecoin by market cap,” he said.
New EURC All-Time High 💶 ✅
EURC is the largest euro stablecoin by market cap and it's dominance is growing. For the first time, it has surpassed the €90 Million mark in circulating supply.
Fueled by an incredible growth on @base – now the chain with the largest amount of… pic.twitter.com/iY3J2RStY0
— Patrick Hansen (@paddi_hansen) October 24, 2024
Meanwhile, Tether’s euro-backed stablecoin, EURT, due to the company’s ongoing challenges in the EU, lags behind EURC. Its market cap currently sits at around $27.5 million, per CoinGecko.
