Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 46

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 46
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 not securities and that the transactions in which we sell them are not securities transactions under U.S. law. Neither the SEC nor
any other U.S. federal or state regulator has challenged our assessment, but they have also not publicly stated whether they agree with our assessment. Despite the Trump Administration’s Executive Order titled “Strengthening American
Leadership in Digital Financial Technology” which includes as an objective, “promoting the growth of ‘lawful and legitimate’ U.S. dollar-backed stablecoins,” Circle stablecoins have not yet been classified with respect to
U.S. federal securities laws. Therefore, while (for the reasons discussed below) we have concluded that USDC is not a “security” within

31

CONFIDENTIAL TREATMENT REQUESTED BY CIRCLE INTERNET GROUP, INC. PURSUANT TO 17 C.F.R. § 200.83

the meaning of the U.S. federal securities laws, and registration (or an exemption
from registration) of offers or sales of Circle stablecoins is therefore not required under the applicable securities laws, we acknowledge that a regulatory body or federal court may determine otherwise. Our conclusion, even if reasonable under the
circumstances, would not preclude legal or regulatory action based on such a finding that USDC is a “security.”

Specifically, under U.S. federal
securities laws, we believe, and the SEC has not objected, that Circle stablecoins are not “securities” when offered and sold as currently conducted by us because of the features of Circle stablecoins. We have also adapted our process for
analyzing the U.S. federal securities law status of Circle stablecoins over time, as guidance and case law have evolved. As part of our U.S. federal securities law analytical process, we take into account a number of factors, including the various
definitions of “security” under U.S. federal securities laws and federal court decisions interpreting the elements of these definitions, such as the U.S. Supreme Court’s decisions in the Howey and Reves cases, as well as
court rulings, reports, orders, press releases, public statements, and speeches by the SEC Commissioners and SEC Staff providing guidance on when a digital asset or a transaction to which a digital asset may relate may be a security for purposes of
U.S. federal securities laws. Our position that neither USDC nor EURC is a “security” is premised, among other reasons, on our conclusion that neither USDC nor EURC meets the elements of