- Circle’s IPO filing arrives as stablecoin regulations tighten, with the STABLE Act proposing stricter oversight and a ban on yield-bearing stablecoins, raising concerns among crypto industry leaders
- Class B shares grant founders superior voting power but are capped at 30 percent, ensuring that public shareholders retain a say in governance while maintaining controlled leadership
- The IPO includes an option for underwriters to purchase additional shares within 30 days, providing flexibility while ensuring stability in the offering during its early market debut
The company responsible for the issuance of the USDC stablecoin “Circle” recently filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission. This move is considered a significant step for Circle, as it will now have the opportunity to access public markets, attract new investors, and expand its influence in the stablecoin sector.
According to the filing, Circle Internet Group, Inc. is officially offering Class A common stock in an initial public offering (IPO). The company has applied to list its stock on the New York Stock Exchange (NYSE) under the ticker CRCL.
Only ‘Class A’ common stock will be offered in Circle’s IPO. Class B shares — which carry higher voting power with five votes per share — will not be included in the public offering. This structure allows the founders Jeremy Allaire and Patrick Sean Neville to maintain control over the company’s decisions.
However, Class B shares’ voting power is capped at 30% of the total voting power. This means that even though founders Jeremy Allaire and Patrick Sean Neville maintain control through higher voting rights, their influence is limited to no more than 30% of all shareholder votes, regardless of how many Class B shares exist.
This cap prevents disproportionate dominance and ensures that public shareholders—who hold Class A shares—still have a significant say in governance. Some Class B shares may be converted into Class A in the future on a one-for-one basis, which could lead to a more distributed voting power among Circle’s shareholders.
The filing also discloses that Circle will not receive proceeds from shares sold by existing stockholders as part of this IPO. Also, the filing includes an option for underwriters to purchase additional shares within 30 days to cover over-allotments, ensuring flexibility in the offering.
The expected delivery date for shares to purchasers is set for 2025, with transactions processed through The Depository Trust Company.
Circle’s decision to go public comes at a crucial time for stablecoin regulation in the United States. Just today, lawmakers continued discussions on the STABLE Act, which aims to establish a clear legal framework for stablecoin issuers. More on this story here.
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