In brief
- Circle’s move to go public doesn’t impact USDC’s stability rating, according to S&P analysts.
- Legal uncertainty remains over whether USDC reserves would be protected if Circle goes bankrupt.
- Proposed GENIUS Act legislation could clarify stablecoin holder protections in bankruptcy scenarios.
USDC issuer Circle’s “moon landing moment” of its IPO and subsequently soaring stock price do little to change the stability of its flagship stablecoin, S&P Global analysts told Decrypt. But questions remain over what might happen if the publicly traded issuer were to go bankrupt.
“The IPO is completely neutral to the stablecoin stability assessment,” S&P Global Ratings analyst Muhammad Damak told Decrypt.
“Going public is not…
