US Authorities to Step Up Crypto Industry Oversight in 2023

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Fourteen years after the genesis block of Bitcoins launched a profound disruption in financial services and other industries thanks to the rise of blockchain technology, US authorities are finally paying more attention to the future of cryptocurrencies. and their economic impact.

On December 14, the Financial Accounting Standards Board discussed new accounting and disclosure requirements for entities holding crypto assets in financial statements, following consultation on the agenda with investors, the first in five years. The proposed rules are expected to be published in the first half of 2023.

A few days earlier, the Securities and Exchange Commission issued a model letter regarding recent developments in crypto markets, asking companies to consider in their disclosures the need to address market developments in crypto assets in their documents in general, including in their business descriptions, risk factors, and management discussion and analysis.

Related:World of Crypto Regulation: How Digital Asset Laws Have Changed in 2022

The changes are expected to be felt by many players in the crypto and financial services industries, according to legal specialists. This is expected to have a macro and micro impact on multiple fronts and ultimately profound on financial markets in general and the crypto industry in particular, said Mark Kornfeld, shareholder of financial fraud and securities law firm. Buchanan Ingersol and Rooney. He told Cointelegraph:

First, the Commission, just as it did after the Madoff Ponzi scheme was exposed to the world, will aggressively monitor and conduct regulatory scrutiny of thousands (if not more) doing business in and around this space. All market participants should reasonably anticipate and fully expect a significant increase in regulatory enforcement proceedings by the Commission and continued legal challenges to the Commission’s jurisdictional authority.

Cryptocurrency is also reportedly becoming a priority for the Internal Revenue Service (IRS), with its Criminal Investigations Division hiring hundreds of new officers to work on digital assets and cybercrime. With its own data scientists, the IRS hopes to cooperate with crypto firms, with the goal of creating a symbiotic relationship to fight financial crime.

Lawmakers in the United States are also under pressure to establish a new regulatory framework for cryptocurrencies after last November’s dramatic collapse of crypto exchange FTX, paving the way for coming market scrutiny. crypto in 2023.

However, some believe the results will be positive in the long run. The net result should prove to be a more regulated and transparent climate, increased market stability and much improved investor and consumer protection in a space that until recently operated in an environment quite characterized as relatively secretive and opaque, Kornfeld said.

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