Stablecoin issuer Circle has taken a decisive action, freezing $58 million worth of USDC linked to the recent turmoil surrounding the LIBRA memecoin. This freeze underscores growing regulatory scrutiny and raises questions about the oversight of stablecoin issuers as the token’s value plunges by over 90%. The scandal centers around Argentinian President Javier Milei, who initially promoted the Libra token, and legal action is underway led by Burwick Law firm in a class-action lawsuit. Reactions are surfacing on crypto platforms like Twitter and Reddit where some express concerns about the impact of centralized stablecoin issuer actions on broader regulatory frameworks. Meanwhile, the cryptocurrency market remains largely unaffected, as major tokens like ETH and BTC continue to trade without significant shifts due to these events.