Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 53

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 53
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, and it
is difficult to predict the direction or timing of any continuing evolution. Furthermore, it is also possible that a change in the governing
administration or the appointment of new SEC commissioners could substantially impact the views of the SEC and its staff. Public statements
by senior officials at the SEC indicate that the SEC does not intend to take the position that Bitcoin or Ethereum, in their current form,
are securities. However, Bitcoin and Ethereum are the only digital assets as to which senior officials at the SEC have publicly expressed
such a view. 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 digital asset. With respect to all other digital assets,
there is currently no certainty under the applicable legal test that such assets are not securities, notwithstanding the conclusions we
may draw based on our assessment regarding the likelihood that a particular digital asset could be deemed a “security” under
applicable laws. Similarly, though the SEC’s Strategic Hub for Innovation and Financial Technology published a framework for analyzing
whether any given digital asset is a security in April 2019, this framework is also not a rule, regulation or statement of the SEC and
is not binding on the SEC.

The SEC has brought enforcement
actions against the issuers and promoters of several digital assets on the basis that the digital assets in question are securities. Such
an enforcement action by the SEC or a state securities regulator, or a similar court decision, with respect to Bitcoin and the other digital
assets we mine or trade, would be expected to have an immediate material adverse impact on the trading value of such digital assets. This
is because the business models behind most digital assets are incompatible with regulations applying to transactions in securities. If
a digital asset is determined or asserted to be a security, it is likely to become difficult or impossible for the digital asset to be
traded, cleared or custodied in the United States through the same channels used by non-security digital assets, which in addition to
materially and adversely affecting the trading value of the digital asset is likely to significantly impact its liquidity and market participants’
ability to convert the digital asset into U. S. dollars. More recently, the SEC has also brought enforcement actions against digital asset
trading platforms for operating unregistered securities exchanges on the basis that certain of the digital assets traded on their platforms
are securities.

Since 2022, the bankruptcy
filings