Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 26

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 26
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objectives, the executive order established a working group on digital asset markets within the National Economic Council, comprised of
representatives from key federal agencies, with a tight timeline for examining existing regulations and proposing a new regulatory framework.
There have also been several bills introduced in Congress that propose to establish additional regulation and oversight of the digital
asset markets.

In this context, in the United States, the “Guiding
and Establishing National Innovation for U.S. Stablecoins Act of 2025” (GENIUS Act) introduces a federal regulatory framework for
payment stablecoins. The legislation requires issuers to obtain either a federal or state license, maintain full reserve backing in U.S.
dollars or short-term U.S. Treasury instruments, and comply with enhanced transparency, capital adequacy, and risk management standards.
The Act prohibits the misrepresentation of stablecoins as legal tender and mandates alignment between state and federal regulatory regimes.
A reconciliation process with the House’s STABLE Act is ongoing, with a unified federal statute anticipated by the end of 2025.

In Hong Kong, the Stablecoin Bill, enacted in May
2025 and effective August 1, establishes a licensing regime under the Hong Kong Monetary Authority (HKMA) for fiat-referenced stablecoin
issuers. The legislation mandates full reserve backing, same-day redemption at par value, and the segregation of client assets. It prohibits
unlicensed issuance and retail marketing, and imposes Basel-aligned liquidity and anti-money laundering requirements. The framework is
designed to integrate with Hong Kong’s broader virtual asset regulatory regime. In the European Union, the Markets in Crypto-assets
Regulation (MiCA), fully effective since December 2024, prohibits algorithmic stablecoins and requires fiat-backed tokens to maintain
high-quality liquid reserves. Further regulatory developments in the EU are expected to focus on supervisory harmonization and potential
expansion to decentralized finance-linked stablecoins.

Recent Developments

On May 23, 2025, the Company announced the completion
of its initial 21 Bitcoin (BTC) acquisition as part of its corporate strategy to integrate Bitcoin into its treasury reserves. The Company
completed the first transaction with an investor group, issuing 254,333 of DDC Class A Ordinary Shares in exchange for 21 BTC, valued
at approximately USD 2,283,667 in current market price.

On May 29, 2025, the Company announced the acquisition
of 79 BTC as part of its ongoing Bitcoin accumulation strategy. DDC issued