Breaking News
Investing Pro 0
⚠ New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

SEC new guidance calls on firms to report cryptocurrency exposure

Cryptocurrency Dec 08, 2022 22:12
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© REUTERS

By Yasin Ebrahim 

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.

SEC new guidance calls on firms to report cryptocurrency exposure
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email