Company: CRCL
Filing Date: 2025-05-27
Form Type: S-1/A
Source: 0001193125-25-126208
Chunk: 55

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-27
Form: S-1/A
Chunk 55
---
 reason; and are held in a
manner designed not to subject them to claims of third parties. Furthermore, we market Circle stablecoins to the public solely for use in commerce, as a means of making payments, transmitting money, and/or storing value, and not as investments.
Recent court decisions also support our analysis. 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.”

On April 4, 2025, the SEC’s Division of Corporation Finance (the
“Division”) issued a statement (the “April 4 Statement”) that clarified the Division’s view that the offer and sale of Covered Stablecoins—defined 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