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Circle, the digital currency company behind the USDC stablecoin, faced difficulties withdrawing $3.3 billion of its $40 billion reserves from Silicon Valley Bank (SVB). The delay was reportedly related to concerns over USDC's regulatory status, which raised concerns about the stablecoin's stability and ability to maintain its peg to the US dollar.

Circle had assured its users that it was working to resolve the issue, and it had joined other customers and depositors in calling for the continuity of SVB, which had recently closed down.

Circle's Chief Strategy Officer and Head of Global Policy had called for an SVB rescue plan from the Federal Deposit Insurance Corporation (FDIC) to safeguard USDC from potential risks associated with investing in the crypto industry. The news highlighted the risks and challenges faced by companies operating in the cryptocurrency industry.