The U.S. Securities and Exchange Commission issued letters to companies flagging the need to disclose any potential impacts from the mayhem in the crypto markets.
“Recent bankruptcies and financial distress among crypto asset market participants have caused widespread disruption in those markets,” the agency’s Division of Corporation Finance advised U.S. public companies on Thursday. “Companies may have disclosure obligations under the federal securities laws related to the direct or indirect impact these events and collateral events have had or may have on their business.”
The U.S. regulator also advised public companies on how to assess risk and provide investors with accurate information about the threats impacting them.
Once again, the SEC re-emphasized its point of view about digital asset platforms needing to be registered and under regulatory jurisdiction.
The cryptocurrency industry has faced a series of collapses in the past few months, starting with the FTX exchange which has been leading to many consequences. SEC Chairman Gary Gensler once urged policymakers to see the failure of FTX as an example for the crypto market.
The relationship between FTX and traditional financial institutions is also under investigation. Senators Elizabeth Warren (D-Mass.) and Tina Smith (D-Minn.) have written to the banking regulator to verify the relationship and point out Moonstone Bank, where FTX invested as an example.
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