Company: CRCL
Filing Date: 2025-04-01
Form Type: S-1
Source: 0001193125-25-070481
Chunk: 53

Company: Circle Internet Group, Inc.
Filing Date: 2025-04-01
Form: S-1
Chunk 53
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 refund of the purchase price with interest thereon to the
extent registration was required but not undertaken. In addition, any enforcement action brought by the SEC against us asserting that USDC, EURC, or any other Circle stablecoin is a security—or any other action against us by any other
regulator—could subject us to private litigation asserting violations of relevant laws. Such developments could impact the adoption of Circle stablecoins, subject us to fines, penalties, and other damages, and adversely affect our business,
results of operations, financial condition, and prospects.

Recent court cases support our analysis that Circle stablecoins are not securities. For example, in June
2024, a federal district court granted in part Binance’s motion to dismiss against the SEC. The court found that Binance’s stablecoin BUSD was not credibly alleged to be offered or sold in a securities transaction and found implausible the
SEC’s allegation that Binance’s promises to develop the BUSD “ecosystem” would lead purchasers to expect an increase in value “when the alleged defining feature of the ‘stablecoin’ was that its value would remain
constant.” In July 2024, the SEC ended its investigation into the Paxos Trust Company as the issuer of the BUSD stablecoin, stating that it will not recommend enforcement action against Paxos in the investigation of BUSD, which market
participants have interpreted as a conclusion that such stablecoin is not a security.

Notwithstanding these positive indications, if one or more Circle stablecoins
were classified as “securities,” 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 exemption) and could obligate us to register as a broker-dealer or in other categories with respect to our role in

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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 when offered and sold as
currently conducted by us