{"id":129986,"date":"2025-05-26T04:21:47","date_gmt":"2025-05-26T04:21:47","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129986"},"modified":"2025-05-26T04:21:47","modified_gmt":"2025-05-26T04:21:47","slug":"banking-groups-ask-sec-to-drop-cybersecurity-incident-disclosure-rule","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129986","title":{"rendered":"Banking groups ask SEC to drop cybersecurity incident disclosure rule"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsAmerican banking and financial industry advocacy groups have petitioned the Securities and Exchange Commission to repeal its cybersecurity incident public disclosure requirements.\u00a0<br \/>\nFive US banking groups led by the American Bankers Association asked the regulator to remove its rule in a May 22 letter, arguing that disclosing cybersecurity incidents \u201cdirectly conflicts with confidential reporting requirements intended to protect critical infrastructure and warn potential victims.\u201d<br \/>\nThe group, which also included the Securities Industry and Financial Markets Association, the Bank Policy Institute, Independent Community Bankers of America and the Institute of International Bankers, claimed that the rule compromises regulatory efforts to enhance national cybersecurity.<br \/>\nThe SEC\u2019s Cybersecurity Risk Management rule, published in July 2023, requires companies to rapidly disclose cybersecurity incidents such as data breaches or hacks. However, the banking groups argue this rule was flawed from the start and has proven problematic in practice since taking effect.<br \/>\nThe banking bodies said that the \u201ccomplex and narrow disclosure delay mechanism\u201d interferes with incident response and law enforcement and creates \u201cmarket confusion\u201d between mandatory and voluntary disclosures.\u00a0<br \/>\nPublic disclosure has also been \u201cweaponized as an extortion method by ransomware criminals to further malicious objectives,\u201d and premature disclosures worsen insurance and liability issues for companies and \u201crisks chilling candid internal communications and routine information sharing,\u201d the group claimed.\u00a0<br \/>\nSome of the banking groups\u2019 claims and fears regarding the ruling. Source: SIFMAThe groups specifically want \u201cItem 1.05\u201d to be rescinded from the SEC\u2019s rules for Form 8-K reporting and parallel reporting requirements applicable to Form 6-K.\u00a0<br \/>\nForm 8-K is used to publicly notify investors in US public companies of specified events, including cybersecurity incidents, that may be important to shareholders or the SEC.\u00a0<br \/>\n\u201cCritically, without Item 1.05, investor interests will still be protected, and we believe they would be better served through the pre-existing disclosure framework for reporting material information, which may include material cybersecurity incidents,\u201d the groups stated.<br \/>\nRelated: Hackers using fake Ledger Live app to steal seed phrases and drain crypto<br \/>\nThe full petition included examples of confusion from participants, specific incidents of ransomware attacks and documented regulatory conflicts.\u00a0<br \/>\nPublic crypto companies impacted\u00a0<br \/>\nThe requirement also impacts publicly listed crypto companies such as Coinbase, which disclosed earlier this month that hackers had bribed its support staff to leak its user data.<br \/>\nThe disclosure saw the company hit with at least seven lawsuits over the disclosure.<br \/>\nCoinbase said that it rejected a $20 million ransom demand after staff leaked user data in a major phishing attack, which the exchange said could cost it up to $400 million in damages.<br \/>\nIf the SEC rescinds the requirement, it may give firms such as Coinbase more time to disclose cybersecurity incidents to the public.\u00a0<br \/>\nMagazine: Bitcoin bears eye $69K, CZ denies WLF \u2018fixer\u2019 rumors: Hodler\u2019s Digest<a href=\"https:\/\/cointelegraph.com\/news\/banking-groups-tell-sec-drop-cybersecurity-incident-disclosure-rule?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsAmerican banking and financial industry advocacy groups have petitioned the Securities and Exchange Commission to repeal its cybersecurity incident public disclosure requirements.\u00a0 Five US banking groups led by&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129986"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129986"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129986\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129986"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}