U.S. SEC Issues New Guidance Calling on Companies to Reveal the Size of Cryptocurrency Assets

By    11 Dec,2022

On Thursday (Dec. 8), the U.S. Securities and Exchange Commission (SEC) issued new guidance calling on public companies to disclose to investors their exposure to and potential impact on the cryptocurrency market. The move is seen as a response by regulators in the wake of the bankruptcy of cryptocurrency exchange giant FTX and the subsequent ripple effects.


Under the latest guidance, the SEC is recommending that public companies disclose in public filings the size of their cryptocurrency asset holdings and their impact on bankruptcy news from FTX, BlockFi and others, with FTX revealing in its previously filed bankruptcy filings that its creditor base could exceed 1 million.

The SEC noted, "Recent bankruptcies and financial distress of cryptocurrency market participants have severely disrupted these markets. Under the federal securities laws, businesses may be obligated to disclose the impact on their business involving these events and accompanying information."

In addition to requiring businesses to describe how the news and subsequent effects of the bankruptcy directly or indirectly affect their own business, financial condition, customers and counterparties, the SEC is also requiring businesses to describe the significant risks that may result from excessive redemptions or suspension of withdrawals of crypto assets and to explain how they will take action to protect their customers' crypto assets.

At press time, the largest cryptocurrency Bitcoin (BitfinexUSD) was trading at $17,246.0 per coin, up 2.45%.



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