SEC Urges Firms to Disclose Crypto Exposure in New Letter

The Securities and Exchange Commission (SEC) has unveiled new guidelines for companies making financial disclosures, which call on them to provide a more detailed record of their exposure to the crypto industry in the wake of recent market chaos. The letter also includes guidelines on exposure to third-party crypto market participants, risks related to firms’ liquidity, their ability to obtain financing, as well as risks relating to “legal proceedings, investigations, or regulatory impacts” within the crypto markets.SEC is now asking firms about any relevant exposure to the chaotic crypto industry.