SEC Staff Publishes Guidance On Disclosure Of Crypto-Related Risks

On December 8, 2022, the staff of the Division of Corporation Finance of the Securities and Exchange Commission (the "SEC") published a sample comment letter highlighting issues related to crypto assets, markets and exposure that registrants should consider when preparing disclosure in connection with their periodic filings and securities offerings. The sample letter includes one general comment and 15 comments relating to Business Description, Management's Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors disclosures illustrative, but not exhaustive of the types of comments that may be made by the staff during its typical selective reviews of registrant's filings and should be taken into consideration as registrants prepare disclosure documents that may not typically be subject to review, such as automatically effective registration statements and prospectus supplements for shelf takedowns.