• Senator Elizabeth Warren’s tweet about „sham crypto audits“ has caused a stir among the Crypto Twitter community.
• The PCAOB issued an advisory on March 8, warning investors to exercise caution when relying on proof-of-reserve reports.
• Crypto Twitter questioned whether Warren is addressing bank failures and asked her to apologize for causing a bank run at Silvergate Bank.
Senator Warren’s Tweet Causes Stir in Crypto Community
U.S. Senator Elizabeth Warren’s latest tweet about „sham crypto audits“ and holding auditors „accountable“ has caused a furor among the Twitter crypto community.The community said the tweet was Warren’s latest attempt to demonize the crypto industry and called it „tone deaf“ amid the banking crisis involving Silicon Valley Bank (SVB).
PCAOB Issues Advisory on PoR Reports
Warren was tweeting in support of the Public Company Accounting Oversight Board (PCAOB) recently proclaiming that crypto companies‘ proof-of-reserve audits are not up to standard and investors should „exercise extreme caution when relying on them.“The PCAOB issued the advisory on March 8 and said it was driven by concerns that investors are placing too much trust in PoR reports. It said:“Importantly, investors should note that PoR engagements are not audits and, consequently, the related reports do not provide any meaningful assurance to investors or the public.“Warren said the move was a step in the right direction but called on the PCAOB to do more so „consumers aren’t left holding the bag when shady crypto firms collapse.“
Crypto Twitter Responds
Crypto Twitter has been reeling from the USDC depeg caused by the SVB meltdown after Circle announced that roughly $3.3 billion of its cash reserves for the stablecoin were held at the collapsed bank. The community highlighted the multiple bank failures in recent days and asked whether Senator Warren is doing anything about those as well.Coin Metrics co-founder Nic Carter responded to Warren’s tweet and questioned whether she will apologize for causing a bank run at Silvergate Bank and „plunging nation’s banks into chaos.“Additionally, BlockTower Capital founder Ari Paul noted how Silvergate—a crypto connected bank—has managed to survive despite multiple banking crises lately.
Criticism Over Lack of Action
Many members of Crypto Twitter criticized Senator Warren for being tone deaf amidst these banking crises especially since she is yet to take any action towards helping banks like SVB or Silvergate recover from their collapses or preventing future ones from occurring again. They also questioned why she has chosen this moment—when many bankers have already suffered losses due to these events—to focus solely on ’sham‘ crypto accounts while ignoring other important financial issues facing America today such as student loan debt relief or housing affordability initiatives which could benefit millions more people than just those invested in cryptocurrencies?
While it remains unclear what action Senator Elizabeth Warren plans to take with regards to cryptocurrency regulation or investor protection measures, her latest tweet regarding ’sham‘ audit practices certainly got tongues wagging within Crypto Twitter circles and beyond.*It will be interesting to see if she follows through with any proposed solutions or if this issue continues remain unresolved leaving both cryptocurrency businesses as well as their customers out of pocket due lack of adequate legal protection.*