Company: CRCL
Filing Date: 2025-05-16
Form Type: S-1/A
Source: 0001193125-25-121234
Chunk: 73

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-16
Form: S-1/A
Chunk 73
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 services, we may be subject to adverse consequences as described above.

Legislation requiring stablecoin issuers to be banks or to be affiliated with banks could materially affect our business.

While our money transmission licenses (“MTLs”) and money services business registration status subject us to regulations that govern material aspects of our
business—such as how we commercialize Circle stablecoins,

49

onboard customers, and maintain adequate reserves underlying Circle stablecoins—such regulation is not equivalent to the kind that governs regulated banking entities. The President’s
Working Group on Financial Markets, together with the FDIC and the Office of the Comptroller of the Currency (“OCC”), issued a joint report on stablecoins in November 2021, which recommended that Congress promptly enact legislation to
regulate stablecoin arrangements, including a requirement for stablecoin issuers to be insured depository institutions.

The federal laws and regulations that would
apply to us if we were to charter or acquire a bank, or be acquired by a banking entity, may include restrictions on non-stablecoin issuance activities, and capital, liquidity, and risk management requirements; restrictions on extensions of credit
and affiliate transactions; and restrictions on dividend payments. To the extent we become subject to such regulation, or by virtue of new legislation, we may need to adjust certain of our operations to the new regulatory environment, which may
cause us to adjust our business practices and materially increase our ongoing cost of regulatory compliance.

The legislative proposals under active consideration by
Congress permit both banks (through insured depository institution subsidiaries) and approved nonbank entities to issue stablecoins under a dual regulatory pathway for issuers to be licensed at the state or federal level. However, certain
legislative proposals generally require issuers exceeding $10 billion in outstanding issuance to transition to federal oversight. To comply with such legislation, we would have to apply to the OCC and receive approval to be a Federal qualified
nonbank payment stablecoin issuer, or either acquire or be acquired by a permitted payment stablecoin issuer, and there is a risk that we may not be able to do so, in which case we would not be able to continue issuing Circle stablecoins in the
United States. We are in the process of engaging with the applicable state and federal prudential regulators to ensure that Circle would be able to obtain the requisite approvals in the event that any of these legislative proposals are enacted into
law. If we were approved, we would become subject to extensive additional and ongoing regulatory and supervisory requirements that could have