Crypto-Related Firms Should Treat Crypto Custody Arrangements as Liability: US SEC

The U.S. Securities and Exchange Commission(SEC) said cryptocurrency-related U.S.-listed companies should associate with those assets to arsenic liabilities and disclose the potential risks to investors, Reuters reported.

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These listed companies include cryptocurrency exchanges and related arsenic retail brokers and banks.

The SEC announcement reads:

“The technological mechanisms supporting however crypto-assets are issued, held, oregon transferred, arsenic good arsenic ineligible uncertainties regarding holding crypto-assets for others, make important accrued risks…including an accrued hazard of fiscal loss.”

Relevant listed companies should also make abstract disclosures to the public about the “quality and quantity” of their crypto assets.

The SEC explained that to protect crypto assets and arsenic-related “significant” technologies, companies should reflect arsenic as a liability connected to companies’ equilibrium sheets to effectively control the associated non-compliance and regulatory risks that could result from protecting crypto assets,

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The Ronin Network has suffered what is being tagged as the largest hack in the history of Decentralized Finance (DeFi), which funds over $625 million carted away by the hackers this week.

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