USD Coin (USDC) generating firm Circle has denied allegations that it has received a “Wells Notice” in relation to its dollar-pegged coin. stablecoin. These accusations have been contested by the company that issues USD Coin (USDC).

On February 14, a since-deleted tweet by a Fox Business reporter named Eleanor Terrett claimed that the United States Securities and Exchange Commission had ordered Circle to halt the sale of USDC due to the fact that the stablecoin was an unrecorded security. The tweet claimed that the SEC had ordered Circle to stop selling USDC due to the fact that the stablecoin was an unregistered security. After the reporter was sued for her fraudulent statements, the tweet was removed and she apologized. The tweet was deleted at a later time.

On the other hand, Dante Disparte, Circle Pay’s director of strategy and foreign policy director, responded quickly and aggressively to the claim questioning its legitimacy. He said that Circle Pay is not responsible for the claim. Just 15 minutes after Terrett’s post, Disparte responded to Terrett’s accusation on Twitter stating that Terrett’s company did not receive a notification from Wells. This statement came in response to Terrett’s tweet. This comment was made in reaction to the accusation Terrett made earlier.

The Securities and Exchange Commission (SEC) will send recipients a formal communication known as a “Wells Notice” to alert them of its plan to initiate enforcement proceedings against you. Recipients of this notice will be informed that the agency intends to take action against them as a result of this notice.

Terrett said she “followed the word of multiple reliable sources” and apologized for the error in her reaction to Circle’s denial of the claim. Circle had stated that the accusation was false. In addition to this, she said that she “went on the word from several credible sources.”