Company: CRCL
Filing Date: 2025-08-12
Form Type: S-1
Source: 0001193125-25-178989
Chunk: 227

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-12
Form: S-1
Chunk 227
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 stablecoins must be fully backed by a reserve consisting of cash; demand deposits; Treasuries with maturities of 93 days or less (“short-term Treasuries”); money received under repurchase agreements backed by short-term Treasuries; reverse repurchase agreements overcollateralized by Treasuries and subject to certain market terms; securities issued by a registered investment company invested solely in the above assets; and tokenized versions of any of the above. Regulators may also permit reserves to include similarly liquid federal government-issued assets approved by regulators. Permitted payment stablecoin issuers may not rehypothecate reserve assets, except for pledging short-term Treasuries for repurchase agreements. Permitted payment stablecoin issuers will be subject to a regulatory regime that includes financial crimes requirements; capital, liquidity and risk management requirements; activities limits; privacy provisions; consumer protection requirements; and provisions related to stablecoin holder priority in insolvency. Issuers must have procedures to process “timely” redemptions. Payment stablecoin issuers must publish monthly reports certified by the CEO and CFO disclosing the state of reserves. The GENIUS Act provides for criminal penalties for knowingly false certifications. Reports must be examined monthly by a registered public accounting firm. Payment stablecoins issued by a foreign issuer cannot be traded on U.S. custodial trading platforms unless the foreign payment stablecoin issuer satisfies a safe harbor to be established by the Treasury Secretary or the issuer: (i) complies with lawful orders to seize, freeze, burn or prevent the transfer of outstanding stablecoins; (ii) is subject to a “comparable” non-U.S. regulatory regime; (iii) registers with the OCC and becomes subject to OCC oversight; (iv) holds reserves in U.S. financial institutions sufficient to meet liquidity demands of U.S. customers; and (v) is not domiciled and regulated in certain sanctioned or primary money laundering concern jurisdictions. The GENIUS Act prohibits foreign payment stablecoins from being treated as a cash equivalent and from being used in certain derivatives applications and in bank to bank transfers. 145

Current principal U.S. federal and state regulatory regimes

Circle is subject to a number of U.S. federal and state regulatory regimes. Some of these will cease to apply to Circle once the GENIUS Act is effective, though several will continue to apply to Circle even after that time.

Money transmitter and money services laws

We remain subject to licensing and registration requirements in relation to our money transmission and stored value issuance