Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 269

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 269
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 services that would make them less attractive to consumers,
impair our ability to offer products and services, and harm our reputation or otherwise adversely affect our businesses.

40

At the end of 2022 and the beginning of 2023, the
CFPB proposed two new regulations that would require certain non-bank financial services companies to make submissions to the CFPB for
inclusion in an online public registry. The first such proposed regulation would require most non-bank financial services companies to
submit to the CFPB consent orders or other non-supervisory orders with or issued by a federal, state, or local regulator or a court in
connection with an action by a federal, state, or local regulator. The second such proposed regulation requires CFPB supervised non-bank
financial services companies to submit consumer contract terms that limit consumers’ legal rights and remedies, such as mandatory
arbitration provisions. Under both regulations, the CFPB would publish online information it receives from non-bank financial services
companies. If we were required to make such submissions to the CFPB, it could increase the risk of enforcement or supervisory action by
the CFPB against us.

We are subject to various regulatory, financial
and other requirements in the jurisdictions in which we operate. We may become involved from time to time in reviews, investigations and
proceedings and information gathering requests, by government and self-regulatory agencies, including state attorneys general. Any of
such events could result in the imposition of damages, fines or civil or criminal claims and/or penalties. No assurance can be given that
the ultimate outcome of any such event would not have a material adverse effect on us or our ability to provide services.

The financial services industry is likely to see
increased disclosure obligations, licensing requirements, restrictions on pricing and enforcement proceedings. Compliance with applicable
laws is costly and can affect operating results, as processes, procedures, control and infrastructure are required to support applicable
requirements. Compliance may also create operational constraints and impose limits on pricing, as financial services industry laws are
designed primarily to protect consumers. The failure to comply could result in significant statutory civil and criminal penalties, monetary
damages, attorneys’ fees and costs, possible revocation of licenses and damage to reputation, brand, loss of our bank partnerships,
and loss of customer relationships.

The cryptoeconomy is novel. As a result, policymakers are just
beginning to consider what a regulatory regime for crypto would look like and the elements that would