New U.S. SEC rule requires public companies to disclose cybersecurity breaches in 4 days

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The Securities and Exchange Commission adopted rules Wednesday to require public companies to disclose within four days all cybersecurity breaches that could affect their bottom lines. Delays will be permitted if immediate disclosure poses serious national security or public safety risks.

U.S. Securities and Exchange Commission Chairman Gary Gensler testifies during a House Financial Services Committee hearing on oversight of the SEC, April 18, 2023, on Capitol Hill in Washington. Two lawsuits filed by the U.S. Securities and Exchange Commission against the world’s biggest cryptocurrency exchanges, Binance and Coinbase, have reopened tensions between the government and a volatile industry that has been marred by scandals and market meltdowns. The U.S.

The rules will put "more transparency into an otherwise opaque but growing risk" and may spur improvements in cyber defenses -- though potentially posing a bigger challenge for smaller companies with limited resources, Lesley Ritter, senior VP at Moody's Investors Service, said in a statement. As well, Peirce said in a statement, the temptation for the SEC to "micromanage" company operations will only grow."For a long time, the largest and most powerful U.S. companies have treated cybersecurity as a nice-to-have, not a must have. Now, it's abundantly clear that corporate leaders must elevate cybersecurity within their organizations," he said in a statement.

 

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