Ernst & Young Provides Insight on Crypto Regulation to SEC
Last week, Ernst & Young LLP (EY US) submitted a letter to the U.S. Securities and Exchange Commission (SEC) in response to the SEC’s request for input on crypto-related matters. The firm highlighted the need for regulatory clarity concerning how federal securities laws apply to crypto markets.
Expertise in Assurance, Tax, and Risk Consulting
EY US shared its extensive experience in providing assurance, tax, and risk consulting services to crypto businesses. The firm discussed the evolving accounting and auditing challenges related to digital assets, particularly in light of recent changes from the Financial Accounting Standards Board (FASB) regarding crypto asset investments.
Enhancing Transparency through Auditing Procedures
EY US emphasized the importance of key auditing procedures, such as verifying public blockchain data and assessing third-party custodians, to ensure transparency in the crypto market. These procedures play a crucial role in providing relevant, reliable information to stakeholders and maintaining trust in the industry.
Collaboration with the SEC
The letter from EY US also expressed the firm’s interest in collaborating further with the SEC to strengthen the regulatory framework surrounding crypto assets. By working together, EY US and the SEC aim to enhance transparency, accountability, and investor protection in the rapidly evolving crypto market.