Company: CRCL
Filing Date: 2025-02-13
Form Type: DRSLTR
Source: 0000950123-25-001969
Chunk: 3

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRSLTR
Chunk 3
---
 held in cash only. The list of assets referenced in the Company’s reserve management standard intends to capture potential assets that may be included in the EURC reserves in the future, which is designed to be comparable to the Company’s USDC reserves and comply with requirements set forth under MiCAR. Note to Consolidated Financial Statements Note 2: Summary of significant accounting policies Assets segregated for the benefit of stablecoin holders, page F-11

| 6. | We note your response to prior comment 17 and object to the Company’s conclusion that its investment in                                                                                                                                             
 the Circle Reserve Fund is not an equity method investment under ASC Topic 323. As a result, please revise your accounting and disclosure to apply the equity method to your investments in this Fund for each period presented in your submission. 
 Please also tell us whether there are any updates to your consideration for the need to provide financial statements for the Fund under Rule 3-09 of Regulation S-X as                                                                              
 originally included as part of your response to comment 41 in our letter dated July 2, 2024.                                                                                                                                                        |

Response: The Company acknowledges the Staff’s comment, and has provided the following analysis, supplementing and restating the Company’s response letter submitted on January 27, 2025. The Company has accepted the Staff’s view that the Company’s investment in the Circle Reserve Fund (the “Fund”) is an equity method investment under ASC Topic 323. Further, the Company has elected to account for this investment by applying the fair value option under ASC Topic 825, which allows an investor to elect the fair value option for recognized financial assets. Under ASC 825-10-15-4,equity method investments are included in such assets because they represent an ownership interest. The Company will continue to measure its shares in the Fund based on their net asset value (“NAV”). The Amended Draft Registration Statement includes revised financial statements reflecting this position. The Company maintains that the Fund qualifies as a cash equivalent under ASC 230-10-20for the following reasons:

| 1. | Readily Convertible to Cash: The Fund’s shares can be easily converted into known amounts of cash and are 
 redeemable on demand.                                                                                     |

| 2. | Minimal Risk of Value Changes: As a government money market fund under Rule                                                                                    
 2a-7, it is subject to strict liquidity and investment guidelines, which significantly reduce the risk of value fluctuations due to changes in interest rates. |

The Fund’s liquidity profile and the