Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 272

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 272
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 regulations, are subject to more extensive supervisory oversight by the CFTC, including registrations of entities
engaged in, and platforms offering, commodity interest transactions. This CFTC authority extends to Bitcoin futures contracts and swaps,
including transactions that are based on current and future prices of Bitcoin and indices of Bitcoin. To the extent that transactions
in Bitcoin are deemed to fall within the definition of a commodity interest, including pursuant to subsequent rulemaking or guidance by
the CFTC, we may be subject to additional regulatory requirements and oversight and could be subject to judicial or administrative sanctions
if we do not or did not at a relevant time possess appropriate registrations as an exchange (for example, as a designated contract market
for trading futures or options on futures, or as a swaps execution facility for trading swaps) or as a registered intermediary (for example,
as a futures commission merchant or introducing broker). Such actions could result in injunctions, cease and desist orders, as well as
civil monetary penalties, fines, and disgorgement, as well as reputational harm. The CFTC has previously brought enforcement actions against
entities engaged in crypto asset activities for failure to obtain appropriate exchange, execution facility and intermediary registrations.

Furthermore, the CFTC and the SEC have jointly adopted
regulations defining “security-based swaps,” which include swaps based on single securities and narrow-based indices of securities.
If Bitcoin is deemed to be a security, certain transactions referencing Bitcoin could constitute a security-based swap. Bitcoin or a transaction
therein that is based on or references a security or index of securities, whether or not such securities are themselves crypto assets,
could also constitute a security-based swap. To the extent that Bitcoin is deemed to fall within the definition of a security-based swap,
including pursuant to subsequent rulemaking or guidance by the CFTC or SEC, we may be subject to additional regulatory requirements and
oversight by the SEC and could be subject to judicial or administrative sanctions if we do not or did not a relevant time possess appropriate
registrations as an exchange (for example, as a security-based swaps execution facility) or as a registered intermediary (for example,
as a security-based swap dealer or broker-dealer). This could result in injunctions, cease and desist orders, as well as civil monetary
penalties, fines, and disgorgement, as well as reputational harm.

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If we or our third-party providers fail to protect confidential
information and/or experience cybersecurity incidents, there may be damage to our brand