Baystreet Staff
The U.S. Securities and Exchange Commission (SEC), which regulates stock markets in America, has issued new guidelines that require publicly traded companies to disclose to investors their exposure and risk to cryptocurrencies.
The guidance comes a month after FTX, one of the world’s largest cryptocurrency exchanges, filed for bankruptcy, citing more than $8 billion U.S. in losses and more than one million creditors.
The SEC has also announced that will take greater enforcement actions on firms that fail to comply with the new disclosure rules.
The markets regulator has spent the past few weeks disputing criticism that it failed to prevent cryptocurrency firms from misusing investor funds.
Under the new guidelines, publicly traded companies in the U.S. must disclose their crypto holdings as well as their risk exposure to the FTX bankruptcy and other market developments related to the cryptocurrency sector.
SEC Chair Gary Gensler has said publicly for years that the U.S. regulator would introduce cryptocurrency regulations to protect investors and enhance its enforcement measures.
However, no significant regulatory or enforcement action on the part of the SEC has occurred until now.
