Two United States Senators Elizabeth Warren and Rod Wyden have raised their voice against failed crypto projects. Elizabeth Warren is one of those Senators in the United States who always looks proactive in taking strong steps for the safety of crypto-related policies.
Rod Wyden and Elizabeth Warren asked the Public Company Accounting Oversight Board (PCAOB) to hold auditors responsible for sham crypto audits. Proof of reserves, in contrast, is an independent audit carried out by a third party to verify that the organization being audited has enough reserves to cover each and every balance of its depositors.
This type of audit is a crucial step in the regulatory process for reliable and skilled digital asset service providers. Customers and the common people can withdraw funds at any time and are transparent about the availability of their funds’ thanks to the Proof of Reserves audit. It also guarantees the custodian is adequately liquid and solvent.
Warren’s statement was criticized by many people because of the Silicon Valley Bank issue. For those who are not aware, Silicon Valley Bank (SVB) is a non-crypto bank and is currently in deep trouble as the bank has decided to shut its operations. Users asked about Elizabeth Warren’s stand on non-crypto banks and the measures taken by her to tackle this problem.
Several prominent personalities have responded to her Tweet and shared their views on this audit. Ari Paul, the owner of Blocktower Capital, said Silicon Valley Bank forcing, which is a non-crypto bank forcing crypto companies into deep trouble.
By not mentioning the Silicon Valley Bank issue Elizabeth Warren tried to avoid any unforeseen controversies but users are asking about what measures have been taken to manage the SVB issue. Recently, a fintech company, Circle reported that they were only able to process a small number of Wire transfers from SVB. This report further added questions on the approach of transparency from the United States Senator.
