Circle, the issuer of USDC, is under investigation from SEC since July 2021

According to an October 4 regulatory filing Form S-4, Circle Internet Financial is under investigation from the U.S. Securities and Exchange Commission (SEC), and it’s fully cooperating with the authorities.

Circle revealed it received a subpoena from the SEC in July

According to a new mandatory filing by Circle, it received an investigative subpoena from SEC’s Enforcement Division in July 2021. The SEC requested documents and information regarding certain holdings, customer programs, and operations.

As reported by Bloomberg Crypto, Circle disclosed this fact, preparing to go public through a merger with special purpose acquisition company Concord Acquisition Corp.

Circle further revealed that it fully cooperates with the investigation, which launched one month after the company released its high-interest yield product, Circle Yield. While Circle hasn’t revealed any extra details concerning the investigation, there are reasons to believe the subpoena might be related to the high yield product.

“In addition, in July 2021, we received an investigative subpoena from the SEC Enforcement Division requesting documents and information regarding certain of our holdings, customer programs, and operations” Circle admitted that the SEC requested information about its products and holdings operations.

It appears that increased regulatory scrutiny and stablecoin issuers are also in the sights of lawmakers. The filing is no cause for concern, but it also doesn’t reveal the focus of the investigation.

The document also reiterates the matter between the SEC and Poloniex – the popular cryptocurrency exchange and also a subsidiary of Circle. Poloniex agreed to pay a civil penalty in civil currency, frustration, and interest worth approximately $10.4 million for not registering as a national stock exchange.

Last month, Coinbase, a member of the Centre Consortium and largest U.S.-based crypto exchange, was forced to abort the launch of a similar high-yield product, Coinbase Lend, after the SEC threatened the company with a lawsuit for issuing unregistered securities.

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