Invsting.com — The Securities and Exchange Commission on Thursday said companies issuing securities would now be required to disclose their exposure to cryptocurrencies in their public filings.
Companies will now have to include crypto asset holdings as well as their risk exposure to the FTX bankruptcy and other market developments in their public filings, the SEC’s Division of Corporation Finance said in a letter to firms with ongoing reporting obligations.
“Companies should consider the need to address crypto asset market developments in their filings,” it added, stressing the need for companies to deliver “clear disclosure about the material impacts of crypto asset market developments.”
Potential material impacts from crypto exposure may include a company’s exposure to counterparties and other market participants, risks related to a company’s liquidity and regulatory and legal impacts in the crypto asset markets.
In the wake of the collapse of crypto brokerage FTX, the SEC has been criticized for not taking a closer look at digital-asset firms with lax disclosure and governance procedures.
SEC Chair Gary Gensler said earlier this week the securities watchdog would take more action if the companies fail to comply with existing rules.
Source: Cryptocurrency - investing.com
