The United States Securities and Exchange Commission (SEC) on December 8 warned public firms to examine and determine whether they have to disclose to investors any possible impacts from recent market volatility and bankruptcies within the crypto sector.
In guidance to all public firms, the Securities and Exchange Commission (SEC) listed all the information that companies may be needed to share with their investors, including whether the companies have any financial material exposures to counterparties that have already filed for bankruptcy or become insolvent.
Public firms are already needed by law to announce all financially material information to investors, but the SEC often issues guidance to companies about how they need to address exposure to major events.
The latest guidance comes after several months of turmoil in the crypto industry and the recent collapse of major crypto companies FTX and BlockFi Inc.
