Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 63

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 63
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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 serve as the foundation for such a regime. We may be unable to effectively react to proposed legislation and regulation of crypto
assets or crypto asset platforms that are adverse to our business.

As crypto assets have grown in
both popularity and market size, various U.S. federal, state, and local and foreign governmental organizations, consumer agencies and
public advocacy groups have been examining the operations of crypto networks, users and platforms, with a focus on how crypto assets can
be used to launder the proceeds of illegal activities, fund criminal or terrorist enterprises, and the safety and soundness of platforms
and other service providers that hold crypto assets for users. Many of these entities have called for heightened regulatory oversight,
and have issued consumer advisories describing the risks posed by crypto assets to users and investors. For instance, in September 2022,
the White House published a fact sheet described as the first-ever “Comprehensive Framework for Responsible Development of Digital
Assets,” which encouraged “agencies to issue guidance and rules to address current and emergent risks in the digital asset
ecosystem.”

Competitors, including traditional
financial services providers, have spent years cultivating professional relationships with relevant policymakers on behalf of their industry
so that those policymakers may understand that industry, the current legal landscape affecting that industry, and the specific policy
proposals that could be implemented in order to responsibly develop that