SEC directs regulated companies on crypto disclosures

• The sooner everyone knows who is exposed, the better.

What they're saying: "Companies with ongoing reporting obligations should consider whether their existing disclosures should be updated," a preface to the letter states.

• The actual letter spells out a long list of ways that a company might be exposed, such as having a shaky custodian, underwriting or other material threats.
• It also addresses things like steps taken to safeguard the company, and notes: "The sample comments do not address an exhaustive list of the issues that companies should consider."

The bottom line: The SEC seems to be saying that companies with funds stuck on platforms with a liquidity crunch — such as FTX, Genesis, BlockFi or Celsius — should probably disclose it right now.