SEC Requires Listed Companies To Disclose Cryptocurrency Information
The Securities and Exchange Commission (SEC) has issued a requirement for companies to disclose if they have financial exposure to crypto assets or whose business and financial status could be affected by digital asset market. This is the latest action in controlling the influence of the cryptocurrency market after the collapse of FTX.
In a document published on December 8, the U.S. Securities and Exchange Commission (SEC) requires listed companies to disclose whether they hold crypto assets, including whether or not they do business with any crypto companies.
“In meeting their disclosure obligations, companies should consider the need to address crypto asset market developments in their filings generally, including in their business descriptions, risk factors, and management’s discussion and analysis”.
The agency guidance continues
Under federal securities laws, a company is obligated to disclose the direct or indirect impact these and other contingencies have had or may have on its business.
Companies must disclose whether they have direct or indirect relationships with companies that have filed for bankruptcy, gone through excessive crypto asset acquisitions, and are non-compliant.
In addition, companies must disclose the impact of certain corporate insolvencies on their business, and companies must take steps to protect client crypto assets.
The SEC’s advice to U.S.-listed companies on Thursday suggests that the recent collapse of companies like FTX has caused widespread market disruption.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Foxy
Coincu News
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News
SEC Requires Listed Companies To Disclose Cryptocurrency Information
The Securities and Exchange Commission (SEC) has issued a requirement for companies to disclose if they have financial exposure to crypto assets or whose business and financial status could be affected by digital asset market. This is the latest action in controlling the influence of the cryptocurrency market after the collapse of FTX.
In a document published on December 8, the U.S. Securities and Exchange Commission (SEC) requires listed companies to disclose whether they hold crypto assets, including whether or not they do business with any crypto companies.
“In meeting their disclosure obligations, companies should consider the need to address crypto asset market developments in their filings generally, including in their business descriptions, risk factors, and management’s discussion and analysis”.
The agency guidance continues
Under federal securities laws, a company is obligated to disclose the direct or indirect impact these and other contingencies have had or may have on its business.
Companies must disclose whether they have direct or indirect relationships with companies that have filed for bankruptcy, gone through excessive crypto asset acquisitions, and are non-compliant.
In addition, companies must disclose the impact of certain corporate insolvencies on their business, and companies must take steps to protect client crypto assets.
The SEC’s advice to U.S.-listed companies on Thursday suggests that the recent collapse of companies like FTX has caused widespread market disruption.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Foxy
Coincu News
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