Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 24

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 24
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 or terrorist enterprises, and the safety and soundness and
consumer-protective safeguards of exchanges or other service-providers that hold, transfer, trade or exchange digital assets for users.
Many of these state and federal agencies have issued consumer advisories regarding the risks posed by digital assets to investors. In
addition, federal and state agencies, and other countries have issued rules or guidance regarding the treatment of digital asset transactions
and requirements for businesses engaged in activities related to digital assets.

Depending on the regulatory characterization of
bitcoin, the markets for bitcoin in general, and our activities in particular, our business and our bitcoin strategy may be subject to
regulation by one or more regulators in the United States and globally. Ongoing and future regulatory actions may alter, to a materially
adverse extent, the nature of digital assets markets, the participation of industry participants, including service providers and financial
institutions in these markets, and our ability to pursue our bitcoin strategy. Additionally, U.S. state and federal and foreign regulators
and legislatures have taken action against industry participants, including digital assets businesses, and enacted restrictive regimes
in response to adverse publicity arising from hacks, consumer harm, or criminal activity stemming from digital assets activity. U.S. federal
and state energy regulatory authorities are also monitoring the total electricity consumption of cryptocurrency mining, and the potential
impacts of cryptocurrency mining to the supply and dispatch functionality of the wholesale grid and retail distribution systems. Many
state legislative bodies have passed, or are actively considering, legislation to address the impact of cryptocurrency mining in their
respective states.

The CFTC takes the position that some digital assets,
including bitcoin, fall within the definition of a “commodity” under the Commodities Exchange Act of 1936, as amended (the
“CEA”). Under the CEA, the CFTC has broad enforcement authority to police market manipulation and fraud in spot digital assets
markets in which we may transact. Beyond instances of fraud or manipulation, the CFTC generally does not oversee cash or spot market exchanges
or transactions involving digital asset commodities that do not utilize margin, leverage, or financing. In addition, CFTC regulations
and CFTC oversight and enforcement authority apply with respect to futures, swaps, other derivative products and certain retail leveraged
commodity transactions involving digital asset commodities, including the markets on which these products trade.

The SEC and its staff have taken the position that
certain other digital assets fall within the definition of a “security” under