SEC asks companies to disclose exposure to struggling crypto firms
The Securities and Exchange Commission (SEC) is asking publicly-traded companies to tell investors about their involvement with struggling cryptocurrency firms (via CNBC). In a notice posted on Thursday, the SEC says companies may have an obligation under federal law to disclose whether their operations or finances have been impacted by the turbulence that’s rocking the crypto market.
The move comes after FTX’s collapse sent ripples across the entire crypto industry and revealed a network of creditors to which FTX owes billions. While the lending arm of Genesis, a major crypto brokerage, suspended withdrawals in the aftermath of FTX’s fall, the crypto trading platform BlockFi filed for bankruptcy and lists FTX as one of its largest...