Company: CRCL
Filing Date: 2025-05-16
Form Type: S-1/A
Source: 0001193125-25-121234
Chunk: 231

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-16
Form: S-1/A
Chunk 231
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 retains enforcement authority to police against fraud and manipulation in spot (i.e., cash) non-security commodity markets, including spot markets
for digital asset commodities such as USDC.

Securities laws

Our
longstanding view is that neither USDC nor EURC is a “security,” and that our offers and sales of USDC and EURC are not securities transactions. We believe that neither USDC nor EURC, nor our offers and sales of USDC and EURC, meet the
elements of the Howey test or satisfies the Reves test. Among the reasons for our conclusion is that holders of USDC and EURC do not have a reasonable expectation of profits from our efforts in respect of their holding of USDC and
EURC. Circle stablecoin ownership does not convey the right to receive any interest, rewards, or other returns in respect of holdings of Circle stablecoins. In addition, the reserves backing Circle stablecoins are composed solely of low-risk and
readily liquid assets—such as short-term U.S. Treasuries and cash equivalents—and are, at all times, held in amounts that equal or exceed the value of Circle stablecoins in circulation. In addition, such reserves are used only for
redemption of Circle stablecoins and not for our (or any other entity’s) operational or general business purposes; are not otherwise lent, pledged, or

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rehypothecated for any 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. In the April 4 Statement, the Division clarified its 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 are not