The Division of Corporation Finance of the US Securities and Exchange Commission released guidance on how companies should revisit crypto-related disclosures to provide investors with “specific, tailored disclosure” about market events and conditions, the company situation and potential impact on investors.
The guidance urges companies to consider crypto asset market developments in their filings, focusing on material impacts which may include:
Exposure to counterparties and other market participants
Risks related to a company’s liquidity and ability to obtain financing
Risks related to legal proceedings, investigations, or regulatory impacts in the crypto asset markets
Sixteen comments were provided by the Division of Corporate Finance to assist companies as they prepare disclosure documents.