SEC Guidelines of Disclosure Come in Wake of Market Chaos.

• Companies are advised by the US regulator, SEC to describe any risks or material exposures related to crypto assets.
• The news comes as the market has seen many firms encounter severe difficulties as a result of the FTX debacle.

The U.S. Securities and Exchange Commission (SEC) has issued new guidance for publicly traded digital assets companies. The guidance requires companies to disclose details of their exposure to the market chaos caused by the collapse of FTX.

The guidance goes beyond simply the amount of cryptocurrencies held on the balance sheet. Companies must also disclose their relationship with third parties that have filed for bankruptcy, have crypto assets unaccounted for, or experienced corporate compliance failures.

In addition, companies are encouraged to share how they protect customer crypto assets, as well as the governance protocols they have in place to prevent conflicts of interest.

The SEC’s guidance is a major step forward in protecting investors and ensuring a secure crypto market. The collapse of FTX has shown that the crypto industry is not immune to risk, and investors need to be aware of the potential for losses.

The guidance also sends a clear message to crypto companies that they need to be transparent about their operations and risks. Companies that fail to comply with the guidance could face enforcement actions from the SEC.

The new guidance is a welcome development for investors who are looking for more transparency in the crypto market. It will help investors make informed decisions about where to put their money and protect themselves from potential losses.

The guidance is also a sign that the SEC is taking the crypto industry seriously. The SEC has been increasing its scrutiny of the crypto market in recent months, and the new guidance is a sign that the agency is not going to let the industry operate in the shadows.

The collapse of FTX has been a major wake-up call for the crypto industry. The SEC’s new guidance is a step in the right direction to ensure that the industry becomes more transparent and secure.