US Senator Calls Up PCAOB to Hold Crypto Auditors Accountable Amid Crypto Storm

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The collapse of Silvergate Bank & Silicon Valley Bank just seven days after one another has caused shockwaves to spread throughout the cryptocurrency industry.

Regulators and legislators in the United States have been concerned because the turbulence has spread into the conventional finance sector. This is a really unfortunate development.

 

Elizabeth Warren Criticized the Public Company Accounting Oversight Board

Elizabeth Warren and Ron Wyden, both of the United States Senate, have increased the pressure that is being put on crypto auditors and are demanding a higher level of responsibility from them over their crypto audits.

On the morning of March 11, Senator Elizabeth Warren went on Twitter (1) to call the Public Company Accounting Oversight Board (PCAOB), urging them to hold crypto auditors accountable for contributing to the current chaos.

During her crusade against auditors for conducting “fake crypto audits,” Senator Elizabeth Warren received support from Senator Ron Wyden, the leader of the Committee on Finance of the United States Senate.

An investor recommendation was provided by the PCAOB earlier this week concerning the proof of reserve (PoR) reports utilized by cryptocurrency businesses.

The Executive of the Investor Advocate of the PCAOB warned investors that they should not place excessive confidence in PoR reports because these reports are not comparable to full audits that accounting firms carry out.

Senator Elizabeth Warren praised the Public Company Accounting Oversight Board (PCAOB) for its recent attempts to inform investors about the risks involved with crypto entities.

Despite this, Senator Warren argued that the Accounting Board must increase its efforts to protect consumers.

She wrote,

“But let’s be clear: there’s more PCAOB needs to do so customers aren’t left holding the bag when shady crypto businesses collapse.”

The crypto community responded angrily to a tweet by Senator Elizabeth Warren, calling for her resignation. People on the cryptocurrency-focused Twitter platform were quick to point out that the politician was incorrect to blame crypto auditors for the ongoing upheaval in the industry.

Ari Paul, the founder of BlockTower Capital, was critical of Warren for the closure of the non-crypto bank, which resulted in the bankruptcy of a number of businesses.

“Stop lying that expanding your business is helping people… “This just keeps producing unwarranted losses for both retail and institutional depositors,” he continued to say.

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