Seeds of Wisdom RV and Economic Updates Thursday Morning 4-3-25
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CIRCLE FILES FOR INITIAL PUBLIC OFFERING, PLANS TO LIST ON NYSE UNDER TICKER SYMBOL “CRCL”
Circle files for an IPO to list on the NYSE under the ticker "CRCL" with a focus on growing stablecoin revenue and market presence.
▪️Circle files for an IPO aiming to list on the NYSE under the ticker symbol “CRCL” with uncertain share pricing.
▪️Circle reports $1.68 billion in revenue for 2024 driven by interest from USDC reserve assets.
▪️Circle’s IPO marks its first attempt at a traditional public listing after a failed SPAC merger.
Circle, the issuer of the USD Coin (USDC), has officially filed an S-1 application with the Securities and Exchange Commission (SEC), signaling its intent to go public. The firm submitted its filing on April 1 which reveals its intention to trade Class A common stock on the New York Stock Exchange under the market identifier “CRCL.”
The filing did not reveal the number of shares Circle plans to offer or the anticipated pricing range. As a result, the company’s valuation remains uncertain. However, it was disclosed that the shares sold by Circle will contribute proceeds directly to the company, while those sold by existing shareholders will not.
Underwriting duties for the IPO are being led by JPMorgan and Citigroup. The firms hold a 30-day right to buy extra shares for any portion exceeding original subscription levels.
Financial Performance and Revenue Growth
Circle’s financial data for 2024 offers a closer look at its performance. The company reported total revenue and reserve income of $1.68 billion, an increase from $1.45 billion in 2023. The bulk of its revenue came from reserve income tied to interest on assets backing the USDC. Operating expenses for the year amounted to $491.7 million, with compensation costs making up the largest portion at $263.4 million.
The net income from continuing operations at Circle reached $156.9 million last year despite a decrease from $271.5 million the previous year. The financial results showed a notable improvement compared to the previous year when Circle recorded a loss of $761.8 million. Adjusted EBITDA financial results for Circle reached $284.9 million in 2024.
Share Structure and Corporate Governance
Circle intends to adopt a three-tier share structure once it goes public. Class A shares, offered in the IPO, will carry one vote per share. Class B shares, which are held by co-founders Jeremy Allaire and Patrick Sean Neville, carry five votes per share. However, these shares are capped at 30% of total voting power. Class C shares carry no voting rights but are convertible under certain conditions.
This structure ensures Circle does not qualify as a “controlled company” under NYSE governance rules following the IPO.
A New Attempt at Going Public
This filing marks Circle’s first attempt at a traditional IPO after its failed merger with a special purpose acquisition company (SPAC) in 2021. The company’s shares have no prior public market. The timing of the IPO coincides with growing stablecoin adoption and increasing regulatory interest in digital dollar infrastructure.
Circle’s IPO remains subject to regulatory review and market conditions. More details on the pricing and share volume will be disclosed in an updated filing before the listing date.
@ Newshounds News™
Source: CryptoNewsLand
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STABLECOIN TRANSPARENCY BILL PASSES HOUSE COMMITTEE WITH OVERWHELMING VOTE
The STABLE Act has cleared the House Financial Services Committee, even as scrutiny of Trump-linked stablecoin ventures mounts.
The House Financial Services Committee voted to advance stablecoin legislation Wednesday, approving the STABLE Act with 32 members in favor and 17 opposed.
The bill, formally named the Stablecoin Transparency and Accountability for a Better Ledger Economy Act, would create a framework for dollar-denominated stablecoins, including reserve requirements and anti-money laundering standards.
During the markup session's opening remarks, House Financial Services Committee Chair French Hill stressed how blockchain technology "continues to transform the way money moves."
Hill stated that the bill forms part of their "ongoing efforts" to promote "financial innovation through sound digital asset policy. "
The vote proceeded despite controversy over President Donald Trump's family's connections to crypto ventures, including their foray into stablecoins with USD1 through World Liberty Financial.
Early in the session, Democrats raised concerns about potential conflicts of interest, suggesting amendments to prevent the president and cabinet members from offering stablecoin products while in office.
Those concerns connect with an earlier statement by Rep. French Hill from Monday that Trump's crypto dealings have made drafting stablecoin legislation "more complicated."
The legislation now faces two more hurdles before becoming law. After the markup, it will be reported out of committee and scheduled for consideration by the House of Representatives.
Both the House and Senate must align their approaches, with key differences in state versus federal regulation and the treatment of foreign issuers such as Tether.
The GENIUS Act, a separate version from the Senate, will be considered alongside it.
Once the STABLE bill passes the House, it will move to the Senate, where it will undergo a similar process of committee consideration before potentially reaching the Senate floor for a vote.
If both chambers approve the bill, any differences between the House and Senate versions would need to be reconciled before the final legislation could be sent to the President for signature or veto.
Wednesday's development marks the committee's second attempt to advance stablecoin legislation. A previous effort in 2023 stalled amid partisan disagreements under the Biden administration.
@ Newshounds News™
Source: Decrypt
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