SEC staff withdraws its 2022 crypto-market disclosure sample letter

What changed

Corporation Finance staff withdrew its December 2022 sample letter focused on disclosure of crypto-market disruption, bankruptcy, counterparty, liquidity, custody, collateral, and regulatory risks. The withdrawal removes that staff comment template but does not remove issuers’ underlying federal disclosure obligations.

Who it affects

• Public companies with crypto exposure
• funds and issuers
• investment advisers conducting issuer diligence
• auditors
• investors

What is still open

• How staff will frame future comments on material crypto exposure under general disclosure requirements

What it means for an advisor

• Remove the withdrawn letter as current staff guidance while continuing materiality-based diligence on crypto exposure, custody, counterparties, liquidity, conflicts, collateral, and legal proceedings.