The US securities regulator has asked trading companies to disclose to investors any potential impact of the turmoil on cryptocurrency trading.
In its new guidance released Thursday, the Securities and Exchange Commission (SEC) has told companies that sell securities that they may have to share with their investors if the companies have financially significant exposures to counterparties that have filed for bankruptcy.
"Companies may have disclosure obligations under federal securities laws related to the direct or indirect impact these events and collateral events have had or may have on their business," the SEC said in a sample letter, reports the Reuters news agency.
The guidelines further state that public companies must also inform their investors about any risks arising from disruptions in crypto-asset markets, depreciation of share prices, loss of customer demand, and the risk of legal proceedings. .
The SEC's corporate finance division urged companies to adopt these recommendations as they prepare documents "that may not normally be subject to review by the division prior to use."
The SEC's latest missive comes in the wake of the FTX saga, in which the crypto firm filed for bankruptcy after lending client funds to a venture trading firm founded by former FTX CEO Sam Bankman-Fried.
It is estimated that more than 100,000 customers were affected by the exchange failure.
On Wednesday, SEC chief Gary Gensler dismissed criticism that the agency failed to act against crypto firms that abuse client funds.
Gensler said the SEC would clamp down on companies if they don't comply with existing rules.
(With contributions from agencies)
