United States Senators Elizabeth Warren and Ron Wyden asked the Public Company Accounting Oversight Board (PCAOB) to hold auditors accountable for failed crypto projects.
The PCAOB — a non-profit overseeing the audits of public companies and other issuers — recently stated that proof-of-reserves (POR) are not equivalent to audits and are not conducted in accordance with PCAOB auditing standards. POR is a method widely adopted by crypto exchanges to confirm the availability of users’ funds. However, Sen. Warren demanded stricter oversight:
“But let’s be clear: there’s more PCAOB needs to do so consumers aren’t left holding the bag when shady crypto firms collapse.”
The crypto community contrasted her statement as numerous members highlighted the ongoing collapse of Silicon Valley Bank (SVB), a Federal Deposit Insurance Corporation-insured bank.
.@RonWyden and I called on @PCAOB_News to hold auditors accountable for sham crypto audits and I’m glad they’re taking this step to protect investors.
But let’s be clear: there’s more PCAOB needs to do so consumers aren’t left holding the bag when shady crypto firms collapse. https://t.co/cRJxwL2gBL
— Elizabeth Warren (@SenWarren) March 10, 2023
On the other hand, with SVB single-handedly contributing to the price instability of the Circle-issued USD Coin (USDC) token, Crypto Twitter questioned Warren’s stance around the collapse of a non-crypto-related bank.
Responding to Sen. Warren, Ari Paul, the founder of blockchain investment firm Blocktower Capital, highlighted how SVB is pushing crypto companies into bankruptcy, stating:
“The far larger non-crypto bank SVB just forced a lot of good companies into bankruptcy. Stop pretending your empire building helps people…this just keeps delivering unnecessary losses for both retail and institutional depositors.”
Tesla CEO Elon Musk shared a meme for the occasion, showcasing the dilemma of investors when it comes to trusting traditional banks and crypto businesses with their money.
— Elon Musk (@elonmusk) March 11, 2023
As previously reported by Cointelegraph, the investor advisory from the PCAOB’s Office of the Investor Advocate reminded users to not solely rely on POR reports as a way to confirm the existence of funds.
“When are you going to apologize for starting the Silvergate bank run and plunging the nation’s banks into chaos?” asked an investor responding to Sen. Warren.
Related: Binance upgrades proof-of-reserves…
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