Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 271

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 271
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result, the CFTC has general enforcement authority to police against manipulation and fraud in the Bitcoin market. From time to time,
manipulation, fraud, and other forms of improper trading by market participants have resulted in, and may in the future result in, CFTC
investigations, inquiries, enforcement action, and similar actions by other regulators, government agencies, and civil litigation. Such
investigations, inquiries, enforcement actions, and litigation may cause us to incur substantial costs and could result in negative publicity.

Certain transactions in Bitcoin may constitute “retail
commodity transactions” subject to regulation by the CFTC as futures contracts. If Bitcoin transactions we facilitate are deemed
to be such retail commodity transactions, we would be subject to additional regulatory requirements, licenses and approvals, and potentially
face regulatory enforcement, civil liability, and significant increased compliance and operational costs.

Any transaction in a commodity, including Bitcoin,
entered into with or offered to retail investors using leverage, margin, or other financing arrangements (a “retail commodity transaction”)
is subject to CFTC regulation as a futures contract unless such transaction results in actual delivery within 28 days. The meaning
of “actual delivery” has been the subject of commentary and litigation, and in 2020, the CFTC adopted interpretive guidance
addressing the “actual delivery” of a crypto asset. To the extent that Bitcoin transactions that we facilitate or facilitated
are deemed retail commodity transactions, including pursuant to current or subsequent rulemaking or guidance by the CFTC, we may be subject
to additional regulatory requirements and oversight, and we could be subject to judicial or administrative sanctions if we do not or did
not at a relevant time possess appropriate registrations. The CFTC has previously brought enforcement actions against entities engaged
in retail commodity transactions without appropriate registrations, as well as recent enforcement settled orders against developers of
decentralized platforms.

Certain transactions in Bitcoin could be deemed “commodity
interests” (e.g., futures, options, swaps) or security-based swaps subject to regulation by the CFTC or SEC, respectively. If the
products and services we or our Bitcoin Service Providers offer to our customers are deemed a commodity interest or a security-based swap,
we would be subject to additional regulatory requirements, registrations and approvals, and potentially face regulatory enforcement, civil
liability, and significant increased compliance and operational costs.

Commodity interests, as such term is defined by
the CEA and CFTC rules and