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US SEC sets rules for crypto: disclose cyber security incidents within four days

July 29, 2023 World Blockchain

The Securities and Exchange Commission (SEC) of the United States have adopted cybersecurity disclosure rules; crypto platforms need to disclose material cybersecurity incidents immediately.

Original story by Brayden Lindrea for Cointelegraph

Public companies in the United States, including listed crypto firms, will be required to disclose any major cybersecurity incidents within a four-day time limit under new rules adopted by the United States securities regulator.

The rules from the United States Securities and Exchange Commission require any public company to disclose a cyberattack within four days of it being deemed “material,” except in cases where such disclosure is deemed a possible national security or public safety risk.

The rules have been adopted as of July 26, and will become effective 30 days following the publication of the adopting release in the Federal Register, according tthe SEC.

It will also require periodic reporting about a registrant’s policies and procedures to identify and manage cybersecurity risks and give periodic updates about previously reported cybersecurity incidents.

The incoming rules are intended to benefit investors by strengthening cybersecurity risk management measures, according to the SEC’s July 26 statement.

“Through helping to ensure that companies disclose material cybersecurity information, today’s rules will benefit investors, companies, and the markets connecting them,” explained SEC Chair Gary Gensler.

“Currently, many public companies provide cybersecurity disclosure to investors. I think companies and investors alike, however, would benefit if this disclosure were made in a more consistent, comparable, and decision-useful way. Through helping to ensure that companies disclose material cybersecurity information, today’s rules will benefit investors, companies, and the markets connecting them, Gensler said.

Learn more about the implications of the new SEC rules that major crypto platforms need to comply with and the history that led to this eventual adoption in the original article by Brayden Lindrea for Cointelegraph here: https://cointelegraph.com/news/sec-adopts-cyberattack-disclosure-rules-crypto-firms