U.S. SEC advises public companies on disclosing crypto impacts
WASHINGTON, Dec 8 (Reuters) - The U.S. securities regulator on Thursday warned public companies to examine whether they need to disclose to investors any potential impacts from recent market volatility and bankruptcies in the cryptocurrency industry.
In guidance to public companies, the Securities and Exchange Commission (SEC) detailed information that businesses may be required to share with their investors, including whether the firms have any financially material exposures to counterparties that have filed for bankruptcy or become insolvent.
Public companies are already required by law to disclose financially material information to investors, but the SEC frequently issues guidance to firms about how they should address exposure to major events.
Thursday's guidance comes after months of turmoil in crypto markets and the recent collapse of major crypto firms FTX and BlockFi Inc.
FACTBOX-Crypto companies crash into bankruptcy
Reporting by Chris Prentice in Washington Editing by Matthew Lewis
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