SEC will oblige crypto platforms to report hacks
Date: 2023-07-30 Author: Karina Ziganova Categories: CRYPTO PAYMENTS, IN WORLD
The U.S. Securities and Exchange Commission (SEC) has adopted new rules that will require crypto companies to report major cybersecurity incidents to the regulator.
According to the document, crypto platforms will have 4 days to transfer information about hacks to the Commission. Situations in which prior disclosure poses a threat to public or national security, the regulator attributed to exceptions.
In addition, companies will have to provide the SEC with regular reports on procedures for identifying and preventing potential threats. The new rules will apply to all public organizations – these include crypto exchanges such as Coinbase and Kraken, and miners such as Marathon Digital and Riot Blockchain.
"It doesn't matter if a company loses a factory in a fire or millions of files due to a cybersecurity incident. Both will matter to investors. By helping to ensure the disclosure of material information about hacks, the adopted rules will benefit companies, their customers and markets, "commented SEC Chairman Gary Gensler.
Earlier this week, Gensler gave an interview to Bloomberg, in which he stated that the crypto market is "full of scammers and traders."
Gensler loses the support of the authorities
However, the contradictory statements of the head of the SEC, it seems, no longer find support either among ordinary market participants or among the American authorities. So, in June, the Blockchain Association of the United States asked not to allow Gensler to regulate the crypto industry. Members of the organization accuse him of failing to create a clear set of rules, which will "allow investors, entrepreneurs, and the public to understand whether securities laws apply to their products or services."
Representatives of the US Congress also took up arms against Gensler, who are extremely dissatisfied with the position of the head of the SEC in relation to cryptocurrencies. Lawmakers believe that the Commission will not be able to regulate the crypto industry under the current rules developed in the last century.
