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SEC builds accounting fraud unit as crypto oversight tilts toward rulemaking


SEC builds accounting fraud unit as crypto oversight tilts toward rulemaking

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The U.S. Securities and Exchange Commission has created a new department to examine accounting and financial reporting violations, indicating intensified scrutiny of corporate disclosures. The move accompanies a shift in the SEC's crypto strategy from litigation toward rulemaking, raising regulatory risk for crypto firms, CEXs/DEXs, token launches and fundraising. This increased compliance and security scrutiny could weigh on adoption and market sentiment.

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The U.S. Securities and Exchange Commission (SEC) has set up a new department dedicated to examining violations in accounting practices and financial reporting, which shows that the agency has begun paying more attention to companies’ disclosures at a time when its approach toward crypto is quickly moving from litigation to rulemaking. For the crypto industry...
Read the article at CryptoPolitan

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