WASHINGTON Reuters - The U.S. securities regulators warned public companies not to reveal to investors any potential impact of recent market volatility and bankruptcies in the criptocurrency industry.
In guidance to public companies, the Securities and Exchange Commission SEC detailed information that businesses may be required to share with their investors, including whether the firms have financial exposures to counterparties that have filed for bankruptcy or become insolvent.
Public companies are required by law to disclose financial material to investors, but the SEC provides guidance to firms on how to address exposure to major events.
Thursday's guidance comes after months of turmoil in the criptocurrency markets and the collapse of major crypto firms FTX and BlockFi Inc.