Banking Groups Urge SEC to Repeal Cybersecurity Disclosure Rule

The American Bankers Association and four others petitioned the SEC on May 22, seeking a repeal of rules requiring public firms to disclose cyber incidents within four days.

This repeal could grant companies, including crypto firms, greater flexibility in incident disclosures amidst rising legal risks.

Banking Industry Pushes Back Against SEC Cybersecurity Rule

Five major banking industry groups have urged the SEC to rescind its latest cybersecurity disclosure rule introduced in July 2023. These groups include the American Bankers Association and the Securities Industry and Financial Markets Association.

The letter suggests that quick disclosure requirements could conflict with existing confidentiality protocols, potentially disrupting incident management across industries. If repealed, firms could delay sharing such information, affecting public response expectations.

"Overly aggressive disclosure requirements may hinder effective incident response and potentially create market instability." — Bank Policy Institute, Industry Leader

Cryptocurrencies and Cyber Rules: Balancing Security and Transparency

Did you know? The push to repeal rapid disclosure rules demonstrates the ongoing tension between transparency and operational security, reminiscent of past debates in financial regulatory history.

Ethereum (ETH) recently closed at $2,566.51 with a market cap near $310 billion according to CoinMarketCap. Trading volume surged by 13.04% in the last day. ETH's price rose by 42.58% over 30 days, highlighting significant volatility yet persistent investor interest.

Coincu's research team suggests a prolonged debate over cybersecurity regulations could impact digital assets as firms weigh the benefits of flexible disclosure against potential investor concerns. Historical trends indicate that regulatory uncertainty often leads to market volatility and adjustments in institutional strategies.