Financial Times information The US Securities and Exchange Commission (SEC) had thwarted Circle’s attempt to go public through a Spac for $9 billion. Using a blank check company, Bob Diamond, a banking giant, tried to venture into the American stock market with a trader. stablecoins.

An incomplete attempt to list the stock in stock

In a statement to the Financial Times published in December, Circle Group, which has abandoned plans to go public, said the deal was held up not by the turmoil in the cryptocurrency market last year, but by the Securities and Exchange Commission. It approved what would have been the world’s largest operation with spac.

While the digital asset market was in the midst of a bull run in July 2021 and November saw the price of popular cryptocurrencies such as Bitcoin hit record highs, a company called Circle, the world’s second largest stablecoin operator, agreed to merge with the vehicle. Created by veteran banker Bob Diamond.

A year later after the collapse of the cryptocurrency market, a wave of bankruptcies followed, including FTX, the largest trading company in existence for decades. It is reported that there are tokens in circulation for the circle Valued at more than USD 44,000 millioncompared to USD 56,000 million in June.

The deal’s abandonment also coincided with a shift in sentiment toward the European Central Bank, which began raising interest rates, and economists predicted a prolonged recession as a result of the change in policy.

According to a person familiar with the situation who spoke to the Financial Times, there was ample time, or “late”, Between Circle’s announcement of its intention to form the SPAC and its expiry in December 2022.

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After the founding of the Bahamas-based FTX in late 2022, this man exposed several flaws in the way crypto groups were organized and highlighted the damage they could cause.

“In my mind I thought there was no way to approve anything.”

After the deal fails, The sector has faced many hurdles in dealing with the Securities and Exchange Commission. In recent years, Bitcoin Cash ETFs have had a difficult time making progress with the SEC, as several ETFs that track the value of Bitcoin Cash have failed, and late last year the SEC announced that it had rejected a proposal for Bitcoin Cash. grayscale. to launch its own ETF, citing concerns about the underlying market for digital assets.

Challenges between regulators and cryptocurrencies It doesn’t look like it’s going to end anytime soon. Companies are trying their best to attract more people to the industry through regulatory licensing, and the old regulatory systems simply cannot accept it.

But the trend is clear. More and more companies will merge and with decentralized services, they will be able to attract more users. Regulation cannot be a burden in the way of technological innovations throughout history.

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