Circle introduced its high-yield solution "Circle Yield" in June, but received a subpoena from the SEC in July.

According to SEC documents, stablecoin issuer Circle is under investigation by regulatory authorities, who have requested information regarding ownership, operations, user plans, and other related details. This scrutiny comes after Circle announced the launch of a high-yield solution called "Circle Yield" in June, prompting comparisons to Coinbase's previous decision to halt its lending product following SEC intervention.

According to the regulatory document filed by SEC on October 4, Circle claims to have received a subpoena from the SEC in July this year:

In July 2021, we received a subpoena from the SEC's Enforcement Division requesting information and documents related to our company's ownership, user plans, operations, etc. Circle is fully cooperating with the investigation.

Based on the timeline of the past few months, Circle announced the launch of the high-yield solution "Circle Yield" in June, regulated by the Bermuda Monetary Authority (BMA), shortly before receiving the SEC subpoena.

In July, Circle announced its intention to go public through a business merger with Concord Acquisition Corp CND to achieve a SPAC listing on the NYSE under the symbol "CRCL."

On August 6, Circle submitted documents to the SEC regarding the SPAC listing, mentioning for the first time the SEC subpoena received in July. However, media coverage was limited at the time as the focus was mostly on Circle's listing application.

In addition, in May this year, USDC expanded its reserves beyond "cash" and "cash equivalents" for the first time. However, following the subpoena, Circle announced in August that starting from September, all USDC will be fully backed by "cash" and "short-term U.S. Treasury bonds."

Recent stablecoin regulatory news indicates that stablecoin issuers including USDT Tether and USDC Circle may soon be regulated in a manner similar to banks in the United States.