Is SEC Going After Crypto Auditing Firms?
Due to the FUD and FTX collapse, people's trust in centralized crypto exchanges is at an all-time low. Crypto platforms and exchanges try to regain customers' confidence by showing proof of reserve and audit reports. Is SEC targetting crypto auditing firms now?
It is clear what kind of relationship SEC has with cryptocurrency. They don't give clear ideas about regulations but are more active to sue crypto projects. Their moves show every cryptocurrency is security except Bitcoin. They will go after every crypto if they can.
One of the leading international audit firms Mazars Group published a report about Binance's proof of reserve. Binance started talking about proof of reserve during the FTX collapse, but when they showed their proof of reserve, people raised different questions. Binance FUD made some noise recently.
When Mazars Group deleted Binance reports from the website, it acted as adding fuel to the fire. If you see smoke, maybe there is fire. And people want to be on the safe side. So they withdrew a huge amount of crypto from Binance. But did Mazars Group know something? That's why they don't want to work with any crypto exchange and platform.
Now SEC pays attention to the crypto auditing firms. The war between SEC and crypto is going on. SEC says not to pay attention to the audit reports. They are concerned about audit reports and it does not complete the picture.
SEC may not do much to those crypto companies that are based offshore and do not fall under the SEC’s jurisdiction. It seems SEC will not stop making its move to scrutinize crypto. If there is too much pressure, the crypto company will move its business outside of the United States.
I think there is no way the centralized authority stops innovation and development in crypto and blockchain. They can make it slow but people will find a way to move forward. If one country puts too much pressure, other countries will welcome crypto projects and companies to start their business in their countries.
Let's see what SEC does next. So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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