Company: CRCL
Filing Date: 2025-05-16
Form Type: S-1/A
Source: 0001193125-25-121234
Chunk: 230

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-16
Form: S-1/A
Chunk 230
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ities of three months or less, reverse
repurchase agreements fully collateralized by U.S. Treasury obligations, government money market funds, and deposit accounts at U.S. state or federally chartered depository institutions, and (v) reserves must be attested to monthly and annually by a
certified public accountant. In addition, regulations governing the BitLicense as well as regulations governing our Virtual Currency License prohibit us from lending, pledging, rehypothecating, or otherwise encumbering reserve assets. Other
jurisdictions are expected to require similar licenses. For example, California’s Digital Financial Assets law will require persons engaging in digital asset business activities to obtain a license from the California Department of Financial
Protection and Innovation when the law comes into effect on July 1, 2026.

While our MTLs and money services business registration status subject us to
regulations that govern material aspects of our business—for example, how we commercialize Circle stablecoins, onboard customers, and maintain adequate reserves to fully back Circle stablecoins—such regulation is not equivalent to the type
of prudential regulation and supervision that applies to regulated banks, such as under the Federal Deposit Insurance Act, National Bank Act, Bank Holding Company Act, and Federal Reserve Act, which include prudential supervision by regulators,
minimum capital requirements, and specified prohibited activities.

Commodities and derivatives laws

The CFTC has stated in guidance and before Congress, and federal case law relating to CFTC enforcement actions have supported, that at least some digital assets,
including Bitcoin, Ether, and certain stablecoins, fall within the definition of “commodity” under the Commodity Exchange Act (the “CEA”) and the regulations of the CFTC thereunder. In particular, on October 12, 2023, the
CFTC expressly stated in a complaint against a third party that USDC is a “commodity” as defined in the CEA and indicated that futures, options, and swap contracts relating to USDC are squarely within the CFTC’s jurisdiction. The CFTC
has regulatory and supervisory authority with respect to so-called “commodity interest” transactions—namely, futures, options, swaps, other derivative products, and certain retail leveraged
commodity transactions—involving digital assets that are non-security commodities, including the markets on which these products trade. The CFTC also has regulatory and supervisory authority over
leveraged retail commodity transactions. In addition, the CFTC