Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 233

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 233
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 take considerable time, and ultimately
may not be successful. Any new products or services could fail to attract customers, generate revenue, or perform or integrate well with
third-party applications and platforms. In addition, our ability to adapt and compete with new products and services may be inhibited
by regulatory requirements and general uncertainty in the law, constraints by our banking partners and payment processors, third-party
intellectual property rights, or other factors. Moreover, we must continue to enhance our technical infrastructure and other technology
offerings to remain competitive and maintain a platform that has the required functionality, performance, capacity, security, and speed
to attract and retain customers, including large, high-frequency and high-volume traders. As a result, we expect to incur significant
costs and expenses to develop and upgrade our technical infrastructure to meet the evolving needs of the industry. Our success will depend
on our ability to develop and incorporate new offerings and adapt to technological changes and evolving industry practices. If we are
unable to do so in a timely or cost-effective manner, our business and our ability to successfully compete, to retain existing customers,
and to attract new customers may be adversely affected.

Bitcoin’s status as a “security” in any relevant
jurisdiction, as well as the status of our Bitcoin-related products and services, is subject to a high degree of uncertainty and if we
are unable to properly characterize a product or service offering, we may be subject to regulatory scrutiny, inquiries, investigations,
fines, and other penalties, which may adversely affect our business, operating results, and financial condition.

The SEC and its staff have taken the position that
a range of crypto assets, products and services fall within the definition of a “security” under the U.S. federal securities
laws. Despite the SEC being the principal federal securities law regulator in the United States, whether or not an asset, product
or service is a security or constitutes a securities offering under federal securities laws is ultimately determined by a federal court.
The legal test for determining whether any given crypto asset, product or service is a security was set forth in the 1946 Supreme Court
case SEC v. W.J. Howey Co. and requires a highly complex, fact-driven analysis. Accordingly, whether any given crypto asset,
product or service would be ultimately deemed to be a security is uncertain and difficult to predict notwithstanding the conclusions of
the SEC or any conclusions we may draw based on our risk-based assessment regarding the likelihood that a particular crypto asset, product