GAO Report Highlights Concerns and Calls for Formal Rulemaking in Cryptocurrency Guidance

The Government Accountability Office (GAO) has concluded in a report that the 2022 guidance on cryptocurrency should have been treated as a formal rule. The report states that the industry believes this guidance threatens the ability of crypto investors to find safe harbors for their assets. According to federal rulemaking procedures, the GAO argues that the accounting bulletin should have gone through a different process, including submission to Congress before it went into effect. However, the report clarifies that this finding does not directly impact the ongoing status of the bulletin as technically nonbinding SEC policy.

The GAO report highlights the concerns raised by the industry regarding the 2022 guidance on cryptocurrency. The industry believes that this guidance poses a threat to the ability of crypto investors to find safe havens for their assets. The GAO argues that the guidance should have been treated as a formal rule, following the proper federal rulemaking procedures. This would have required submission to Congress before it went into effect.

It is important to note that the GAO's conclusion does not change the current status of the accounting bulletin as technically nonbinding SEC policy. However, the report brings attention to the need for a thorough review of the rulemaking process for cryptocurrency guidance.

In conclusion, the GAO report emphasizes the industry's concerns about the 2022 guidance on cryptocurrency and highlights the need for a more formal rulemaking process. Crypto investors should stay informed about any updates or changes to the guidance and continue to seek safe harbors for their assets.