Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 65

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 65
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 Working Group on Financial Markets, together with the FDIC and the Office of the Comptroller of the Currency
(“OCC”), issued a joint report on stablecoins in November 2021, which recommended that Congress promptly enact legislation to regulate stablecoin arrangements, including a requirement for stablecoin issuers to be insured depository
institutions. Since that time, several legislative proposals have been introduced, but none have yet been enacted.

The proposals currently under consideration have
differing rules regarding what types of entities can issue stablecoins. There is a risk that legislation is ultimately enacted that requires stablecoin issuers to be banks or bank affiliates. To comply with such legislation, we would have to apply
to charter or acquire a bank, or be acquired by a bank, and there is a risk that we would not receive approval, in which case we would not be able to continue issuing Circle stablecoins in the United States. If we were approved, we would become
subject to extensive additional and ongoing regulatory and supervisory requirements that would have a material impact on both our current business and future business activities, and may limit our growth opportunities or require us to divest certain
businesses. The federal laws and regulations that would apply to us if we were to charter or acquire a bank, or be acquired by a bank, may include, among other things, requirements related to changes of ownership or control; activities restrictions,
and capital, liquidity, and risk management requirements; restrictions on extensions of credit and affiliate transactions; and restrictions on dividend payments. To the extent we become subject to such regulation as a result of chartering or
acquiring a bank, or by virtue of new

42

CONFIDENTIAL TREATMENT REQUESTED BY CIRCLE INTERNET GROUP, INC. PURSUANT TO 17 C.F.R. § 200.83

legislation, we will need to adjust our operations to the new regulatory environment,
which may cause us to adjust our business practices and materially increase our ongoing cost of regulatory compliance.

Minting and redeeming Circle stablecoins from our platform involves risks, which could result in loss of customer assets, customer disputes, and other liabilities.

To receive a
Circle stablecoin, a verified customer must wire transfer the amount of fiat currency corresponding to the equivalent amount of desired applicable Circle stablecoin to a Circle bank account. Once the credit is made to the Circle bank account, tokens
are minted to the customer’s Circle Mint account, effectively increasing the applicable Circle stablecoin in circulation.