Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 34

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 34
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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, certain crypto assets, products or services may be deemed to be a
“security” under the laws of some jurisdictions but not others. Various foreign jurisdictions may, in the future, adopt additional
laws, regulations, or directives that affect the characterization of crypto assets, products or services as “securities.”

The classification of a crypto asset, product or
service as a security under applicable law has wide-ranging implications for the regulatory obligations that flow from the offer, sale,
trading, and clearing, as applicable, of such assets, products or services. For example, a crypto asset, product or service that is a
security in the United States may generally only be offered or sold in the United States pursuant to a registration statement
filed with the SEC or in an offering that qualifies for an exemption from registration. Persons that effect transactions in crypto assets,
products or services that are securities in the United States may be subject to registration with the SEC as a “broker”
or “dealer.” Platforms that bring together purchasers and sellers to trade crypto assets that are securities in the United States
are generally subject to registration as national securities exchanges, or must qualify for an exemption, such as by being operated by
a registered broker-dealer as an ATS in compliance with rules for ATSs. Persons facilitating clearing and settlement of securities may
be subject to registration with the SEC as a clearing agency. Foreign jurisdictions may have similar licensing, registration, and qualification
requirements.

The Fold app is not registered or licensed with
the SEC or foreign authorities as a broker-dealer, national securities exchange, or alternative trading system (or foreign equivalents),
and none of our products or services are registered as securities offerings, because we only offer products and services related to Bitcoin,
and we believe there are good arguments that Bitcoin and our related products and services are not securities (including based on prior