Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 27

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 27
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 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 or service could be deemed a “security” or “securities offering” under applicable laws. The SEC
generally does not provide advance guidance or confirmation on its assessment of the status of any particular crypto asset, product or
service as a security. It is also possible that a change in the governing administration or the appointment of new SEC commissioners could
substantially impact the approach to enforcement by the SEC and its staff.

Public statements made by senior
officials at the SEC indicate that the SEC does not intend to take the position that Bitcoin (as currently offered and sold) is a “security”
under the U.S. federal securities laws. However, such statements are not official policy statements by the SEC and reflect only the speakers’
views, which are not binding on the SEC or any other agency or court and cannot be generalized to any other crypto asset. As of the date
of this prospectus, with the exception of certain centrally issued digital assets that have received “no-action” letters from
the SEC staff, Bitcoin is the only crypto asset which senior officials at the SEC have publicly stated is unlikely to be considered a
“security.” With respect to all other crypto assets, there is no certainty under the applicable legal test that such assets
are not securities, notwithstanding the conclusions we may draw based on our risk-based assessment regarding the likelihood that a particular
crypto asset could be deemed a “security” under applicable laws.

<div align='center'>13</div>

Any enforcement action by the
SEC or any international or state securities regulator asserting that Bitcoin is a “security,” or a court decision to that
effect, would be expected to have an immediate material adverse impact on the trading value of Bitcoin, as well as our business. This
is because the business models behind most crypto assets are incompatible with regulations applying to transactions in securities. If
a crypto asset is determined or asserted to be a “security,” it is likely to become difficult or impossible for the crypto
asset to be traded, cleared or custodied in the United States and elsewhere through the same channels used by non-security crypto assets,