SEC published recent guidance directing the firm to disclose cryptocurrency chances

SEC published recent guidance directing the firm to disclose cryptocurrency chances

December 13, 2022: -The Securities and Exchange Commission released recent guidance Thursday, requiring organizations that issue securities to disclose their exposure and objection to the cryptocurrency market to investors.

The guidance comes nearly a month following the FTX, one of the biggest cryptocurrency transfers in the world, filing for bankruptcy following a loan of customer funds to a risky trading firm that FTX’s former CEO Sam Bankman-Fried founded. Over 100,000 customers were bothered by the exchange’s downfall.

On Wednesday, SEC Chair Gary Gensler is fending off to accuse the agency is failing to prevent crypto firms from misusing customer funds. Gensler said that the SEC would take enforcement actions if the companies failed to comply with existing rules.

Under the new guidance, firms must include crypto asset holdings, risk revealing to the FTX bankruptcy, and market developments in their public filings. The firm’s bankruptcy filings indicate the firm has over 1 million creditors.

The SEC’s Division of Corporation Finance created a representative letter after a selective outcome of findings was created under the Securities Act and the Securities Exchange Act, directing companies to disclose “such more material information, if any, as it is necessary to create the required statements, in light of the situations under which they are made, not misleading,” the guidance stated.

A suggested item in the letter asks the issuer to say how the organization’s defaults and subsequent consequences “have impacted or may impact your business, fiscal condition, customers, and counterparties, either directly or indirectly.” One more asks for a description of “any material risk, either direct or indirect, because of the excessive savings, withdrawals, or a suspension of savings or withdrawals, of crypto assets. Recognize any material concentrations of risk and quantify any worldly exposures.”

The SEC’s corporate financial division encouraged firms to get these recommendations as they make documents “that may not typically be subject reviewing by the Division before their use.”

About Us

We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.

Recent Posts

Embedded Insurance Specialist | Scott Walchek

Trōv is a global leader in embedded insurance, powering the future of digital insurance distribution and emerging mobility. Its robust insurtech platform empowers financial institutions and insurance incumbents to easily embed insurance products within other digital experiences to increase recurring revenue.

Keeping American Families Safe | Martin Burlingame

While only one in ten homes throughout the United States has flood insurance coverage, floods are the country’s most common and deadli-est natural disaster. Since 2000, they have cost American taxpayers $850 billion, two-thirds of the total cost of all natural disasters, yet only 1 out of 10 homes are insured for flood, and that number could soon be reduced.

Working with Gold Standards | Lori Murphy

Insurance needs to be more precise as there are solutions that protect the assets owned by the Property Managers (apartment units) and solutions that protect the Residents and their personal belongings. Which programs to offer and buy depends on each unique client’s needs.

SEC published recent guidance directing the firm to disclose cryptocurrency chances