Company: CRCL
Filing Date: 2025-06-02
Form Type: S-1/A
Source: 0001193125-25-132755
Chunk: 56

Company: Circle Internet Group, Inc.
Filing Date: 2025-06-02
Form: S-1/A
Chunk 56
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 acknowledge, however, that the SEC, a court, state regulators, state attorneys general, or
other regulatory authorities could take a different view. The regulatory treatment of stablecoins has drawn significant attention from legislative and regulatory bodies around the world, including from a variety of U.S. congressional committees and
financial regulators. Application of securities laws to the specific facts and circumstances of digital assets is complex and subject to change. Our conclusion, even if reasonable under the circumstances and in our view consistent with the April 4
Statement, would not preclude legal or regulatory action based on a finding that either USDC or EURC is a “security,” or was offered or sold by us in a securities transaction. As such, we are at risk of enforcement proceedings against us,
which could result in potential injunctions, cease-and-desist orders, fines, and penalties if any Circle stablecoins were determined to be a security, or our offer and
sale of any Circle stablecoin were determined to be a securities transaction by a regulatory body or a court. In such cases, USDC and EURC customers that purchased directly from Circle could also have rescission rights under applicable securities
laws.

If one or more Circle stablecoins were classified as “securities,” or offered or sold in securities transactions, we and other market participants
engaging with Circle stablecoins would be subject to significant additional regulation, much of which is incompatible with our and their current practices. Among other things, this would require us to register the offer and sale of Circle
stablecoins under the Securities Act (absent an available

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exemption) and could obligate us to register as a broker-dealer or in other categories with respect to our role in facilitating transactions in Circle stablecoins. Third-party market
intermediaries could be required to register in a number of capacities. See “—If Circle stablecoins were classified as “securities” under U.S. securities laws, only registered broker-dealers would be able to intermediate sales of
Circle stablecoins between us and purchasers, which they may be unable to do consistent with their regulatory requirements.”

Moreover, although we believe that
Circle stablecoins are not “securities” under U.S. federal securities laws, either in general or when offered and sold as currently conducted by us, third parties, including our business partners, may create and market investment products
related to or involving Circle stablecoins that could involve the offer and sale of a “security” under U.S. federal securities laws. In such cases, the