Is it true that "tell me who you hang out with and I'll tell you who you are"?
Apparently, for Circle's strategists, the phrase makes sense, or at least that could be the downstream reading of their recent decision to withdraw their USDC stablecoin from the TRON network.
Just hours ago they published from their official account on X, that with immediate effect no more USDC will be issued in TRON, although the transition for the total disincorporation of the stablecoin will be done gradually until February next year, this is to make it less traumatic for holders, and in turn, give them the necessary time to migrate their funds.
Everything points to the fact that centralized organizations and companies, such as Circle, Binance, and others, are aware that it is not convenient to win over governments, and even less so the US as an enemy or poacher; therefore, prioritizing their business, they prefer to comply with the rules, regulations, and agreements established by regulators. In this sense, it makes sense that Circle has decided to distance itself from TRON, whose good reputation does not precede it lately, neither the network nor its creator Justin Sun.
1/ We are discontinuing USDC on the TRON blockchain in a phased transition. Effective immediately, we will no longer mint USDC on TRON. Transfers and redemptions of USDC on TRON will continue to operate normally through February 2025. Read the details: https://t.co/kw9A3ZUpWH
— Circle (@circle) February 21, 2024
TRON is condemned by at least two specific things; first, the accusations of market manipulation and illicit operations that hang over Justin Sun and his companies. Second, his Chinese origin and roots. The latter has nothing to do with xenophobia or any racial discrimination, but rather with more acute issues involving geopolitical and power interests.
If Circle wants the approval of US regulators, the last thing they would want is to be tarnished by the history or shadows of an unwanted partner, with serious accusations by the SEC ( source), and belonging to a country with which they do not have the best relations right now for reasons of force majeure. In this light, TRON is not the partner Circle would want to showcase itself with.
It is possible that in a "when you see your neighbor's beard burning, soak yours", Circle has played its chips smartly in its favor. Why put its company and business at risk? Why get muddy with other people's mud? Kind of like what Binance did recently in removing Monero from the exchange, considering it is true that they did it quietly to get the "OK" in terms of regulatory compliance.
In the end, companies will always defend and prioritize their interests...
