Blockchain Companies Will Have to Disclose Information on Hacks to SEC

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The US Securities and Exchange Commission (SEC) has recently adopted new rules that require crypto companies to disclose information about major cybersecurity incidents.

Companies have four days to notify the agency of any “substantial” breaches; exceptions are made if there is a threat to public or national security.

These rules will take effect 30 days after adoption on July 26. Companies must also periodically report details of their plans to recognize and mitigate risks.

Chairman of the SEC, Gary Gensler, made a statement in regards to the new rule, saying:

“By helping to ensure disclosure of material information about hacks, today’s rules will benefit companies, customers, and markets.”

These disclosure rules are applicable to all public entities in the US, including Coinbase, Marathon Digital, Riot Blockchain, and Hive Digital Technologies.

In June, Gensler conveyed that the cryptocurrency market is full of fraud and reminiscent of the securities market of the 1920s prior to the implementation of regulation.

Additionally, he raised questions about the need for cryptocurrencies in an already digital world with fiat money like the dollar or the euro.