Blockchain firms to be required to report hacks to the SEC

The U.S. Securities and Exchange Commission (SEC) has adopted new rules obliging crypto firms to disclose information about major cybersecurity incidents.

Under the document, organizations have four days to transmit to the agency information about material breaches. Exemptions include situations where premature disclosure would pose a risk to public or national security.

The rules were approved on July 26 and will take effect 30 days after adoption.

In addition, companies will be required to periodically report on procedures for identifying and mitigating risks of potential threats.

“Whether a company loses a plant in a fire or millions of files due to a cybersecurity incident, it could matter to investors. […] By helping ensure the disclosure of material information about hacks, today’s rules will benefit companies, clients and markets,” said SEC Chair Gary Gensler.

The disclosure rules apply to any public company in the United States. Included are Coinbase, Marathon Digital, Riot Blockchain and Hive Digital Technologies.

Earlier in June, Gensler заявил that the crypto industry is rife with fraud and resembles the securities market of the 1920s before regulation.

The head of the SEC also expressed сомнение в необходимости for the modern crypto world, since fiat currencies like the dollar or euro are already digital.

In July he запросил additional funding of $109 million to protect investors in the crypto markets.