Company: CRCL
Filing Date: 2025-05-16
Form Type: S-1/A
Source: 0001193125-25-121234
Chunk: 55

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-16
Form: S-1/A
Chunk 55
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 as
stablecoins that are designed to maintain a stable value relative to the U.S. dollar on a one-for-one basis, can be redeemed for U.S. dollars on a one-for-one basis, and are backed by assets held in a reserve that are considered low-risk and readily
liquid with a U.S. dollar-value that meets or exceeds the redemption value of the stablecoins in circulation—do not involve the offer and sale of securities within the meaning of U.S. federal securities laws when marketed in the manner and
under the circumstances described in the April 4 Statement. Our view is that USDC satisfies the definition of Covered Stablecoins set forth in the April 4 Statement and that our offer and sale of USDC is not an offer of securities under U.S. federal
securities laws, although neither the SEC nor the Division has concurred with our view. In addition, although EURC is euro-denominated and thus does not satisfy the definition of Covered Stablecoins set forth in the April 4 Statement, it is our view
that EURC would satisfy such definition but for the fact that all relevant currency denominations for EURC are in euros rather than U.S. dollars. Accordingly, our view is that our offer and sale of EURC also does not involve the offer and sale of
securities within the meaning of U.S. federal securities laws, although neither the SEC nor the Division has concurred with our view.

We 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 EUR