Ernst & Young’s Engagement with the SEC
Last week, Ernst & Young LLP’s U.S. branch (EY US) reached out to the U.S. Securities and Exchange Commission (SEC) with a thoughtful letter addressing the commission’s inquiry into cryptocurrency regulations. In its correspondence, EY US underscored the necessity for well-defined regulatory guidelines to clarify the application of federal securities laws within the cryptocurrency sector.
Insights from EY US
The firm shared insights from its extensive experience in providing assurance, tax, and risk consulting tailored to the needs of crypto enterprises. Given the recent updates from the Financial Accounting Standards Board (FASB) concerning accounting practices for digital assets, EY US also touched on emerging challenges in accounting and auditing for cryptocurrencies.
Auditing Techniques and Transparency
Additionally, the firm elaborated on vital auditing techniques, which include:
- Examining public blockchain records
- Evaluating the reliability of third-party custodians
These practices aim to ensure enhanced transparency in crypto transactions. The letter notably remarked on the important function of auditors in delivering non-audit attestations that supply stakeholders with accurate and trustworthy information.
Commitment to Regulatory Development
In closing, EY US conveyed its eagerness to partner with the SEC in the development of a robust regulatory environment for digital assets, indicating a proactive approach to fostering industry growth and stability.
