LONDON (Bywire News) - The Securities and Exchange Commission (SEC) issued a warning to public companies on Thursday to examine their potential exposure to recent market volatility and bankruptcies in the cryptocurrency industry. The SEC guidance explained that companies may need to disclose to investors any material financial information they have regarding these events.
The SEC warning follows months of turmoil in the crypto markets, including the collapse of prominent crypto firms FTX and BlockFi Inc. Firms are already required by law to disclose any material financial information to their investors. However, the SEC guidance serves as a reminder that companies must remain vigilant in monitoring the potential impacts of major events.
The SEC guidance is an important reminder for all public companies to remain aware of their potential financial exposures. By providing timely and accurate disclosure of this information, companies can ensure that their 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)
