Circle CEO Jeremy Allaire Says Company Is Financially Strong and Doesn't Need to Raise More Funds to Go Public

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.

Circle CEO Jeremy Allaire has stated that the company is not currently seeking any funding and is financially strong enough to pursue a public listing on its own, 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's comments come as the US expands its workforce in anticipation of new 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 is 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-stablecoin

Circle's euro-backed stablecoin, EURC, has hit a record high supply of 91.8 million tokens, according to data from CoinGecko. EURC's market cap is approaching $100 million with growth being driven by strong activities on Ethereum's layer 2 Base.

Since becoming MiCA-compliant, EURC has seen a remarkable increase in circulation, expanding by more than 2.5 times, according to Patrick Hansen, Circle Senior Director of EU Strategy and Policy. This growth has propelled EURC to become “the largest euro stablecoin by market cap,” he said.