The SEC has required companies to publicly disclose whether they do business with any crypto-related companies.
The U.S. Securities and Exchange Commission also required companies to disclose whether they invested in crypto assets.
SEC Demands Transparency
The regulator said this demand came from “recent bankruptcies and financial troubles among crypto-asset market participants” and, most recently, due to the collapse of FTX.
“Companies, in meeting their disclosure obligations, should consider the need to address crypto-asset market developments in general, including job descriptions, risk factors, management discussion and analysis.”
Per the request, firms must disclose whether they have direct or indirect relationships with companies that have filed for bankruptcy, experienced excessive redemption of crypto assets, and experienced crypto-related failures.
Companies should also explain how certain firms affect their business and that the company should take measures to protect its customers’ crypto assets.
The news comes after the collapse of FTX caused the SEC to increase its measures.
