LONDON (Bywire News) – The Securities and Exchange Commission (SEC) issued a warning to public companies on Thursday to examine potential exposure to market volatility and bankruptcy in the cryptocurrency industry. SEC guidance explains that businesses may be required to disclose to investors material financial information about these events.
The SEC warning follows months of turmoil in the crypto market, including the collapse of prominent crypto firms FTX and BlockFi Inc. However, the SEC’s guidance is a reminder that businesses must remain vigilant to monitor the potential impact of major events.
The SEC’s guidance is an important reminder for all public companies to stay aware of their potential financial exposures. By providing timely and accurate disclosure of such information, businesses can ensure that investors have the knowledge they need to make informed decisions.
(Reporting by Chris Prentice in Washington, Writing by Natalia Siler, editing by Michael O’Sullivan)
