Company: CRCL
Filing Date: 2025-05-27
Form Type: S-1/A
Source: 0001193125-25-126208
Chunk: 233

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-27
Form: S-1/A
Chunk 233
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, or
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 offers or
sales 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. Our conclusion, even if reasonable under the circumstances and in our view
consistent with the April 4 Statement, would not preclude legal or regulatory action based on a finding that either USDC or EURC is a “security,” or was offered or sold by us in a securities transaction. See “Risk factors—Risks
related to our business and industry—Although we have concluded that Circle stablecoins are not “securities” under U.S. federal securities laws and our offers and sales of Circle stablecoins are not securities transactions, any
classification of Circle stablecoins as a “security.” or our offer or sale of Circle stablecoins in