Company: CRCL
Filing Date: 2025-08-04
Form Type: DRS
Source: 0000950123-25-006942
Chunk: 236

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-04
Form: DRS
Chunk 236
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 that such issuer will maintain, or create the reasonable expectation that it will maintain, a stable 
 value relative to the value of a fixed amount of monetary value; and                                            |

| • |     | that is not a national currency, deposit, or otherwise a security. |

Only “permitted payment stablecoin issuers” (“PPSIs”), as defined under the GENIUS Act, may issue stablecoins in the United States. Depending on a number of factors and determinations, a PPSI may be primarily regulated at the federal or state level. In addition, the GENIUS Act contains certain prohibitions on digital asset service providers offering or selling unlawful stablecoins beginning on July 18, 2028. The GENIUS Act generally prohibits a PPSI or foreign payment stablecoin issuer from paying yield or interest to the holder of a payment stablecoin solely in connection with the holding, use, or retention of the payment stablecoin. The GENIUS Act amends the federal securities laws to provide that a payment stablecoin issued by a PPSI is not a security and that a PPSI is not an investment company, and amends the Commodity Exchange Act to exclude payment stablecoins issued by a PPSI from the definition of “commodity.” Payment stablecoins must be fully backed by a reserve consisting of cash; demand deposits; Treasuries with maturities of 93 days or less (“short-term Treasuries”); money received under repurchase agreements backed by short-term Treasuries; reverse repurchase agreements overcollateralized by Treasuries and subject to certain market terms; securities issued by a registered investment company invested solely in the above assets; and tokenized versions of any of the above. Regulators may also permit reserves to include similarly liquid federal government-issued assets approved by regulators. Permitted payment stablecoin issuers may not rehypothecate reserve assets, except for pledging short-term Treasuries for repurchase agreements. Permitted payment stablecoin issuers will be subject to a regulatory regime that includes financial crimes requirements; capital, liquidity and risk management requirements; activities limits; privacy provisions; consumer protection requirements; and provisions related to stablecoin holder priority in insolvency. Issuers must have procedures to process “timely” redemptions. Payment stablecoin issuers must publish monthly reports certified by the CEO and CFO disclosing the state of reserves. The GENIUS Act provides for criminal penalties for knowingly false certifications. Reports must be examined monthly by a