Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 268

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 268
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 SEC issued Staff
Accounting Bulletin No. 121 (“SAB 121”), which represented a significant change regarding how a company safeguarding crypto
assets held for its platform users reports such crypto assets on its balance sheet and required retrospective application as of January 1,
2022. On January 30, 2025, the SEC issued Staff Accounting Bulletin (“SAB”) No. 122 (“SAB 122”). SAB 122 rescinded
the previously-issued SAB 121 guidance with respect to accounting for obligations to safeguard digital assets that an entity holds for
its customers. SAB 122 directs an entity to apply Accounting Standards Codification (“ASC”) 450-20, Loss Contingencies to
determine whether an entity has a liability related to risk of loss from an obligation to safeguard digital assets for customers.

Uncertainties in or changes to regulatory or financial
accounting standards could result in the need to change our accounting methods and restate our financial statements and impair our ability
to provide timely and accurate financial information, which could adversely affect our financial statements, result in a loss of investor
confidence, and more generally impact our business, operating results, and financial condition.

Risks Related to Government Regulation and Privacy Matters

The regulatory environment in which the consumer finance industry
operates could have a material adverse effect on our business and operating results.

The Dodd-Frank Wall Street Reform and Consumer Protection
Act (the “Dodd-Frank Act”) was signed into law on July 21, 2010. The Dodd-Frank Act is extensive and significant legislation
that, among other things, created the CFPB, an agency responsible for administering and enforcing the laws and regulations for consumer
financial products and services. The CFPB has broad rulemaking, examination and enforcement authority over providers of financial services
and products, which could include us and our affiliates, including authority to prevent “unfair, deceptive or abusive” practices
and to collect fines and provide consumer restitution in the event of violations. In addition to the CFPB, other federal agencies, such
as the FTC, and state regulators, such as consumer protection and financial services regulators and attorneys general, may exercise supervision
and enforcement authority over providers of goods or services, like us. Depending on how such governmental authorities elect to exercise
its statutory authority, it could increase the compliance costs for us and our third party service providers, potentially delay our ability
to respond to marketplace changes, result in requirements to alter products and