Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 54

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 54
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 of FTX and other bankruptcy filings of crypto companies have increased the regulatory scrutiny of the digital asset industry.
For example, on June 5, 2023, the SEC brought charges against each of Coinbase and Binance with operating its digital asset trading platform
as an unregistered national securities exchange, broker and clearing agency, asserting that certain assets supported on each trading platform
are securities. On January 21, 2025, the SEC announced the formation of the Crypto Task Force, which is dedicated to helping develop a
comprehensive and clear regulatory framework for crypto assets. On February 13, 2025, the SEC and Binance received a 60-day stay in the
SEC’s lawsuit against Binance, with both parties acknowledging that the new Crypto Task Force may impact and facilitate the potential
resolution of this case. Similarly, given the pending work of the Crypto Task Force, the SEC also filed to dismiss its lawsuit against
Coinbase on February 27, 2025. However, as stated in an announcement of the SEC, its decision to exercise the discretion and dismiss this
enforcement action rests on the SEC’s judgment that the dismissal will facilitate the its ongoing efforts to reform and renew its
regulatory approach to the crypto industry, not on any assessment of the merits of the claims alleged in the action, and the SEC’s
decision to seek dismissal of the lawsuit against Coinbase does not reflect its position on any other cases.

We have adopted risk-based policies
and procedures to analyze whether the digital assets that we mine, hold and sell for our own account could be deemed to be a “security”
under applicable laws. Our policies and procedures do not constitute a legal standard, but rather represent our management’s assessment,
based on advice of our securities counsel, regarding the likelihood that a particular digital asset could be deemed a “security”
under applicable laws. Regardless of our conclusions, we could be subject to legal or regulatory action in the event the SEC, a foreign
regulatory authority, or a court were to determine that a digital asset currently held by us are a “security” under applicable
laws. If the digital assets mined and held by us are deemed as securities, it could limit distributions, transfers, or other actions involving
such digital assets, including mining, in the United States. In addition, miners on blockchain networks could, under certain circumstances,
be viewed as statutory underwriters or as “brokers” subject to regulation under the Exchange Act. This could require us or
our customers to change, limit