After Bitcoin’s genesis block initiated a dynamic upheaval of financial services and other industries with the introduction of blockchain technology 14 years ago, U.S. authorities are now investing more time in understanding cryptocurrencies and their potential economic consequences.
On Dec. 14, the Financial Accounting Standards Board (FASB) conducted its first agenda consultation with investors in five years to discuss new accounting and disclosure requirements for entities holding crypto assets in their financial statements. These anticipated regulations are expected to be released within the initial half of 2023.
SEC will aggressively monitor the crypto market
A few days ago, the SEC issued a letter to companies in the crypto markets alerting them of recent developments and urging them to consider adding disclosures about these changes in their filings. However, this could include business descriptions, risk factors, and management’s discussion and analysis within their documents.
According to Mark Kornfeld, a securities and financial fraud shareholder at the law firm Buchanan Ingersol and Rooney, many players in both the crypto and finance industries will be impacted significantly by these changes. “The modifications are predicted to have macrocosmic and microcosmic ramifications on monetary markets not only generally but also, particularly, within the cryptocurrency sphere,” declared Kornfeld. The attorney continued:
First, the Commission, much like it did…
