SEC New Regulation Listed Cryptocurrency Companies Must Disclose Significant Cybersecurity Incidents

SEC requires cryptocurrency companies to disclose major cybersecurity incidents.

Author: BRAYDEN LINDREA, COINTELEGRAPH; Translation: Songxue, LianGuai

According to the new rules adopted by the US securities regulatory agency, US listed companies, including listed cryptocurrency companies, will be required to disclose any significant cybersecurity incidents within four days.

The rules of the US Securities and Exchange Commission (SEC) require any listed company to disclose such attacks within four days if they are deemed “significant,” except in cases where they are considered to pose a threat to national security or public safety.

The SEC stated that these regulations were adopted on July 26th and will take effect 30 days after the publication of the implementation notice in the Federal Register.

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It also requires periodic reports on registrants’ policies and procedures to identify and manage cybersecurity risks, and regular updates on previously reported cybersecurity incidents.

According to the statement by the SEC on July 26th, the upcoming rules aim to benefit investors by strengthening measures to manage cybersecurity risks.

The SEC’s explanatory statement provides an explanation of the upcoming cybersecurity disclosure rules. Source: US Securities and Exchange Commission.

SEC Chairman Gary Gensler explained, “By helping ensure that companies disclose important cybersecurity information, today’s rules will benefit investors, companies, and the markets that connect them.”

The new rules will apply to any listed company in the United States. In the cryptocurrency industry, publicly listed cryptocurrency companies include Coinbase (COIN), Marathon Digital (MARA), Riot Blockchain (RIOT), and Hive Digital Technologies (HIVE).

The SEC explains that the increase in digital payments and digitalization of workforce operations, combined with the ability of criminals to profit from cybersecurity incidents, makes the new rules a necessary condition for protecting investors.

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