Arca Cuts Ties with Circle Amid USDC IPO Allocation Controversy

Circle's public debut was met with both celebration and controversy as its shares more than doubled from the IPO price before settling slightly lower. The $1.05 billion offering marked one of crypto's largest public entries since Coinbase—but Arca's CIO Jeff Dorman unleashed a scathing critique of Circle's allocation process, revealing a rift between crypto-native firms and traditional finance.

Dorman's now-deleted open letter accused Circle of sidelining long-standing industry supporters in favor of TradFi institutions. Arca, a decade-long USDC advocate, received just 1.35% of its requested $10 million allocation despite early participation in the roadshow. "We've defended USDC to every institution that called this industry a joke," Dorman wrote, highlighting the perceived betrayal.