Crypto Transparency Reports Run Quality Gamut, SEC Official Says

Crypto companies are increasingly hiring auditors amid calls for more transparency about how they handle customer assets after the collapse of exchange FTX, but those auditors also must be clear about the limits of any work they perform, an SEC official said Monday.

“The proof of reserve reports that we have seen run a really broad spectrum,” Paul Munter, acting chief accountant for the Securities and Exchange Commission, said at an American Institute of CPAs conference in Washington. “Some of them look like they are actually high-quality undertakings. Others, it’s really hard to tell what’s being done.”

Such proof of ...