On Dec. 8, the SEC’s Division of Corporation Finance released a statement “regarding recent developments in crypto-asset markets.”

The guidance has targeted companies that have disclosure obligations under federal securities laws. Citing “widespread disruption” in crypto markets, the regulator said that companies should evaluate their disclosures and update them if crypto is involved.

“In meeting their disclosure obligations, companies should consider the need to address crypto asset market developments in their filings generally, including in their business descriptions, risk factors, and management’s discussion and analysis,”

Furthermore, auditing firms have already upgraded crypto firms to high risk.

(By Martin Young)