Chief Accountant of the United States Security Exchange Commission (SEC), Wesley Bricker, thinks that firms in the country have to follow standard accounting procedures while conducting any crypto-related transactions.
According to a report on Monday, Wesley made this remark at the AICPA National Conference on Banks & Saving Institutions in Washington, D.C.
Wesley pointed out that crypto firms need to follow standard accounting procedures since it helps to strengthen and build public trust in them. This will, in the long run, play a significant role in the smooth running of the U.S. economy.
Proper accounting documentation of crypto-related firms will accurately and fairly reflect the issuer’s transactions and the disposition of its assets, according to the official.
During the event, Wesley spoke on three vital topics, including digital assets and the application of blockchain technology in the financial sector.
“[It is] critical that we keep ourselves informed about emerging technologies so that the accounting profession can continue to perform the essential gatekeeper function for issuer compliance related to financial reporting,” Wesley said.
Need For Crypto Firms to Conduct Proper Auditing
Wesley urged crypto companies in the U.S. to always strive to keep appropriate accounting books, as long as the business is blockchain-related.
He also advised crypto companies to first consider their policies and the expertise of their accounting staff to support the preparedness for compliance with the SEC laws.
According to reports last year, Wesley had urged American auditors to investigate the way cryptocurrency and other digital assets are exchanged and traded.
“I suggest that it is warranted for the accounting profession to also invest time in understanding these areas. I have not heard particularly good rationales for turning off – or never turning on – the profession’s lamps at this time,” Wesley said at the time
The remark made by the Chief Accountant of the U.S. SEC is a good development, as it helps to display the legitimacy of cryptocurrency and other digital assets to the public, and intending crypto investors.
Do you think this would help portray the transparency of Cryptocurrencies to the public?