United States lawmakers call for accountability from crypto auditors

• U.S. Senators Elizabeth Warren and Ron Wyden are calling for more accountability from crypto auditors.
• The lawmakers are alleging that the sham audits by crypto auditors are responsible for the ongoing turmoil.

The fall of Silvergate Bank and Silicon Valley Bank within a span of a week has sent shockwaves throughout the crypto industry. Unfortunately, the spillover of the turmoil into the traditional finance space has caught the attention of regulators and lawmakers in the United States. 

Senator Elizabeth Warren calls out the PCAOB

United States Senators Elizabeth Warren and Ron Wyden have turned up the heat on crypto auditors and are calling for more accountability from them for their crypto audits.

Senator Warren took to Twitter earlier on 11 March to call on the Public Company Accounting Oversight Board (PCAOB) to hold crypto auditors accountable for their role in the current turmoil.

Senator Warren was joined by the Chairman of the U.S. Senate Committee on Finance, Senator Ron Wyden, in her campaign against auditors for their “sham crypto audits”. 

The PCAOB issued an investor advisory earlier this week regarding proof of reserve (PoR) reports used by crypto entities. The PCAOB’s Office of the Investor Advocate warned that PoR reports are not equivalent to full audits conducted by accounting firms and that investors should not place undue reliance on such reports. 

While Senator Warren commended the PCAOB for their recent efforts to educate investors about the risks associated with crypto entities, she argued that the Accounting Board should elevate its efforts in the interest of consumer protection.

“But let’s be clear: there’s more PCAOB needs to do so consumers aren’t left holding the bag when shady crypto firms collapse,” she tweeted. 

Senator Warren’s tweet was met with fierce retaliation from the crypto community. Users from crypto Twitter were quick to point out that the lawmaker was wrong to blame crypto auditors for the ongoing turmoil. 

BlockTower Capital founder Ari Paul criticized Warren for the non-crypto bank’s shutting which forced numerous firms into bankruptcy. “Stop pretending your empire building helps people…this just keeps delivering unnecessary losses for both retail and institutional depositors,” he added.