Being on the razor’s edge doesn’t seem to make it possible to evade surveillance by the Securities and Exchange Commission (SEC) The United States. And in this case, given the current trend, it could almost be a good thing. Because the latter reminds listed American companies that they must meet a disclosure requirement. This is about potential issues related to the collapse of the cryptocurrency industry.
During the 2020-21 bull market It was quite popular for a company to advertise its involvement in cryptocurrencies. At the forefront of this trend is the ex-CEO of the company MicroStrategybut still bitcoin is maximal, Michael Sailer. And shovelful purchases of BTC to garnish a treasury of this digital asset with improbable returns.
A decidedly different dynamic today. Because the same companies that have been promoting the purchase of cryptocurrencies are the very ones doing it trying to cover up the carnage after the stock market crash. Especially when exposure to the FTX platform makes recovering funds completely impossible. Reason why the United States Securities and Exchange Commission just issued a warning their disclosure obligations to their shareholders.
SEC Disclosure Triggered
That Consequences of the FTX case and the collapse of the cryptocurrency market are not all known. Even more so when certain companies in the traditional economy try to hide critical information in order not to panic their shareholders. A lack of transparency that may well be illegal for publicly traded companies. Because the latter should meet certain requirements, such as the disclosure obligation. These are, in the words of the SEC’s Corporate Finance Division, any issues that may arise “due to excessive redemptions, withdrawals, or suspension of redemptions or withdrawals of crypto-assets.” »
And so much to say that this situation can affect a large number of companies, To the delight of Goldman Sachs Bank. Just see how The legendary video game retailer Gamestop just got rid of “any exposure to cryptocurrencies”. Because on December 7th, during his call for results officially, that’s what its CEO Matt Furlong officially announced the company “currently no longer holds a physical balance of any cryptocurrency”. However, this does not call into question their involvement in the NFT sector.
A process by the SEC that bypasses sending out a letter to solicit affected companies with this transparency. But with Questions asked that present themselves as “non-exhaustive”.. According to the supervisory authority, companies must be able to assess their risk exposure. And, after all, the so-called “investor protection” so often associated by the SEC its surveillance campaigns for the cryptocurrency industryt can’t continue to undermine traditional economics with overly embarrassing questions. Priority issue…