Blockchain in the USA does not cancel accounting for ICOs and crypto assets

The US Securities and Exchange Commission (SEC) does not intend to recognize the uniqueness of innovative blockchain technologies and intends to squeeze all cryptocurrency processes into accounting standards.

According to SEC Chief Accountant Wesley Bricker, the unique prospects for using a distributed registry and crypto assets do not exempt them from financial reporting standards and responsibility to investors. Bricker emphasized this thesis in his speech at the AICPA national banking conference in Washington. 

Devoting his speech to blockchain applications and companies using innovative technologies, the SEC chief accountant particularly focused on the responsibility for the reliability of financial reporting. He emphasized the importance of maintaining the intermediary role of the accountant and keeping accounting, control and reporting in line with generally accepted accounting standards. The use of a distributed registry does not exempt from accounting, especially for companies conducting ICOs.

This position is fully consistent with the categorical position of SEC head Jay Clayton. He clearly advocates strict alignment of both accounting and securities market regulation of the entire crypto industry to uniform current standards. In his opinion, the Commission should act as a “guardian of standards” and prevent changes to the established rules in the market.

However, not all American regulators share this point of view. The US Treasury Department expressed the opposite view. The document, which focuses on financial systems creating new opportunities for the economy, along with references to the risks of innovative fintech, notes the discrepancy between the old framework of existing rules and the new realities. The document notes the need to modernize the rules so that they do not impede the development of the market and do not slow down the introduction of new technologies.