U.S. banking groups urge SEC to rescind cybersecurity incident disclosure rule
ChainCatcher news, according to Cointelegraph, five major banking industry groups led by the American Bankers Association jointly sent a letter to the U.S. Securities and Exchange Commission (SEC) on May 22, requesting the repeal of the requirement in the "Cybersecurity Risk Management Rules" issued in July 2023 that public companies must disclose cybersecurity incidents within four days.The signatories include the Securities Industry and Financial Markets Association, the Bank Policy Institute, and other organizations. The banking industry groups pointed out that this rule directly conflicts with the confidentiality reporting requirements for protecting critical infrastructure, which could hinder incident response and law enforcement actions, leading to market disruption. They specifically requested the removal of the "1.05 clause" in the 8-K form, arguing that the existing framework for disclosing significant information is sufficient to protect investor interests. This rule also applies to publicly listed cryptocurrency companies.Earlier this month, Coinbase faced at least seven lawsuits for disclosing a user data breach incident, as the company refused to pay a $20 million ransom, with estimated potential losses reaching $400 million. If the rule is repealed, related companies will have more flexibility in their incident disclosure timelines.