Wednesday, February 8, 2023

SEC Will Ask Companies in the US to Disclose Whether They Have Crypto Exposure

The fallout of FTX doesn’t end there. The crisis of confidence that resulted from the incident has extended beyond the cryptocurrency market as well. Now the US Securities and Exchange Commission (SEC) will demand that companies publicly report whether they handle digital currencies and/or do business with any companies within the sector.

The Authority published a guide with various observations relating to the operations of the companies. According to what was argued there, the remedy is due “Recent bankruptcies and financial difficulties among crypto-asset market participants”it’s all mainly related to the fall of transactions FTX and its affiliated companies.

“In meeting their disclosure obligations, companies should consider the need to address crypto asset market developments generally in their presentations, including a description of their businesses, risk factors, and management’s discussion and analysis.”

On the other hand, Companies should also inform if they have any links with companies in the crypto sector that have declared bankruptcyAlso those who saw the disruptions in terms of digital currency redemption and withdrawals stressed on whether it affects their operations in any way and whether they have to take measures to protect their users.

More SEC Regulation

About ftxWas preparing an investigation against the SEC transactions For purported offer of unregistered securities. But the collapse of the company prompted an acceleration of the investigation.

SEC Chairman, Gary GenslerAssured that the body he presides does not require more powers to adequately address the cryptocurrency space.

The representative of the regulatory body clarified that the Securities law is entirely relevant to this type of case., He also emphasized that he would only need more money and a scope that would allow him to go beyond American borders.

Those who suggested greater control by the SEC strengthened that theory since the FTX case. It is clear from these reports that the authority will try to register more presence during the investigation.

This applies to both companies and offers that work with cryptocurrencies. It should be remembered that there is a kind of dispute with the regulator Commodity Futures Trading Commission (CFTC)To clarify which institution has more jurisdiction to address the digital currencies space.

in the last hours, a commissioner of The European Union reported that they will soon implement measures for crypto companies to provide tax information on their European users. The measure seeks to prevent theft crimes that take advantage of digital currency technologies. He clarified that this would also be effective for companies that provide their business services outside their region.

new office

As part of its increased presence in the region, the SEC decided to build two new offices this last quarter of the year. This was with the goal of providing specialized support to the seven offices currently responsible for reviewing issuer filings.

this is a Office of Crypto Assets and Applications and Industrial Services, Both will be specifically focused on the treatment of crypto assets and industrial applications and services respectively.

The Office of Crypto Assets will handle the DRP effort to review crypto asset submissions, allowing the department to re-focus its resources. “To address unique and evolving filing review issues related to crypto assets.”

The Office of Industrial Applications and Services, on the other hand, would be created to take charge of non-pharmaceutical, non-biotechnology and non-medicinal products. Office of Life Sciences,

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Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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