Crypto vs SEC: The Battle for Transparency Heats Up!

The confrontation between the SEC and the crypto industry seems far from over. The recent proposal by Paul Munter, chief accountant of the SEC, to impose an “all or nothing” policy on accounting firms in their dealings with crypto companies, caused shock waves. Accusing these firms of deliberately lacking transparency, he calls for a stricter approach which he believes would enhance the operational clarity of these companies. But the proposal sparked a wave of criticism and concern even within the financial regulator, once again highlighting the growing tension between government regulation and the ever-changing world of cryptocurrency.

An SEC suggestion that has accountants worried

Another questionable decision by the SEC. Paul Munter proposed to impose on accounting firms an approach ” all or nothing “ in their relationship with crypto firms. A policy which, according to the chief accountant of the SEC, would aim to strengthen the operational transparency of these companies.

The SEC accountant suspects crypto firms of deliberately lacking transparency during unannounced audits directed against it. They would present in this context information which would be only partially true.

This would limit, he thinks, the realization of an in-depth audit. He then wants to see audit firms dissociate themselves, or even publicly denounce any crypto company acting in this way. In particular in the event of misrepresentations concerning work unrelated to a given audit.

Suggestion of the frame of the financial regulator provoked a wave of reactions, even internally. Friday, July 28, Hester Pierce, an attorney serving as SEC Commissioner, challenged her colleague’s recent statement.

The lawyer believes that the approach he proposes is fundamentally wrong. Contrary to the aim pursued, it would encourage crypto firms not to be spontaneously transparent.

It is not so much that the commissioner does not recognize the importance of transparency in the operations carried out by crypto companies. The manager wonders about the relevance of such a process. “Why would we want to discourage good faith efforts to provide more transparency? », Pierce asked in a tweet.

Mike Shaub, a professor of auditing and accounting ethics, also reacted to Paul Munter’s proposal. Such a measure would, among other things, increase the constraints that already weigh on the auditor when making public statements. This is due to their confidentiality obligations.

The Paul Munter news is yet another example of the tough regulatory policy the SEC is imposing on the crypto industry. A strategy that has been fiercely criticized throughout recent months.

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential Tremplin.io!

Similar Posts