The U.S. Securities and Commission said in a statement today that U.S.-listed companies that hold cryptocurrencies on behalf of other companies must calculate the value of these assets, making them a liability, and disclose the risk associated with these assets to investors.
The SEC stated in its statement that the storage of digital assets on behalf of others carries risks that do not exist in other assets:
“Technological Risks: Both the protection of assets and other safeguards for third parties in the market. There are risks associated with cryptoassets that are not regulated.
Legal Risks: Due to the unique characteristics of the assets and the lack of legal precedent, there are important legal questions about how to handle such arrangements in a court proceeding arising from an adverse event (eg fraud, loss, theft or bankruptcy).
Regulatory Risks: Compared to many common regulations to protect assets for third parties, there are far fewer regulatory requirements for the custody of crypto assets. Companies providing crypto custody services may not comply with these requirements, which indicates that there is a significant risk for investors”
Due to the reasons listed by the SEC, companies should inform users about these risks and calculate assets at fair values. and stressed that it should be made an obligation.
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