The U.S. Securities and Exchange Commissions has issued an “investigative subpoena” to Circle, the firm behind the USD Coin (USDC) stablecoin, the company said in a regulatory filing on 4 October.
According to the document, the regulator was trying to obtain a number of documents and information from Circle regarding some of its holdings, customer programs, and operations. While the company did not elaborate on what the SEC was investigating, it did state it had plans to “fully cooperate” with the regulator, which issued the subpoena back in July.
The filing, which revealed the investigation, is part of Circle’s plans to go public using a special-purpose acquisition vehicle through a merger with Concord Acquisition Corp, which has valued Circle at $4.5 billion.
This is not the first time Circle was connected to a SEC investigation this year, with the company having agreed to pay more than $10 million in fines back in August for charges against its former subsidiary Poloniex, which was accused of operating as an unregistered crypto exchange.
Under the guidance of Gary Gensler, the SEC has been more and more aggressive when it comes to crypto regulation and enforcement. Last month, the regulator threatened cryptocurrency exchange Coinbase that it could be sued over its yet-to-launch “Lend” program, which intends to provide a 4% annual yield returns to users that deposit their USDC.