The Securities and Exchange Commission (SEC) has requested US-based firms to provide detailed explanations on whether they have been affected by the recent decline of cryptocurrencies.
In a written statement, the SEC warned public companies that if they’ve been hit with the crypto market’s recent woes, they’d better tell their investors about it. Especially FTX With its bankruptcy, many companies announced that they were affected by this situation. However, the majority of these companies were companies that were interested in cryptocurrencies and were in the spotlight.
At this point, the SEC Called out to all US-based publicly traded companies and doing business with cryptocurrencies between them of those negatively affected in terms of balance sheet demanded the necessary clarification:
Companies have disclosure obligations under federal securities laws regarding the direct or indirect effects of these events and collateral events on their business.
However, this is not described as a comprehensive investigation and is essentially required for companies to assess their specific risks and concerns. While the effects of the FTX crash are still lingering and many companies owes millions of dollars worth of crypto assets to its investors that the SEC’s financial turmoil It is estimated that he is worried about the spread to traditional markets.