Daily Management Review

U.S. watchdog advises companies to check their cryptocurrency assets


The U.S. Securities and Exchange Commission (SEC) gave recommendations to American businesses, asking them to review their cryptocurrency holdings and, if necessary, report on their status.

CryptoWallet.com Images
CryptoWallet.com Images
"The recent bankruptcy and financial issues of a few bitcoin market participants have upheaved this industry. According to federal law, many businesses may be required to report and disclose the potential direct or indirect consequences of such events on their operations or financial situation," the SEC notes.

The Office of Corporate Finance at the SEC believes that businesses should review the need for such evaluations and disclosures, including by giving investors greater information to aid in their assessment of the potential repercussions to themselves. Companies with existing disclosure requirements should think about whether their standards need to be changed to reflect the current environment.

U.S. commentators blame the SEC's activities on the recent bankruptcy of important cryptocurrency platform FTX, which has had an impact on a number of other participants in the crypto sector.

source: cnn.com