Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 234

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 234
---
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.

22

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 proxy statement/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.

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, which in addition to materially
and adversely affecting the trading value of the crypto asset is likely to significantly impact its liquidity and market participants’
ability to convert the crypto asset into U.S. dollars and other currencies.

Several foreign jurisdictions have taken a broad-based
approach to classifying crypto assets, products and services as “securities,” while other foreign jurisdictions, such as Switzerland,
Malta, and Singapore, have adopted a narrower approach. As a result