Nvida Corp. recently reached an agreement with the SEC in which Nvida will pay $5.5 million to settle charges that it failed to adequately disclose that cryptocurrency mining was bolstering sales of its gaming graphics processor units. The settlement is a sign of the increased scrutiny of cryptocurrency by the SEC and other federal regulators, Anne Termine tells Agenda Week.
The SEC order should alert board of directors and their audit committees of the need to have a deeper understanding of what cryptocurrency means for their companies.
“Boards and audit committee should be asking themselves, ‘What activities are we involved in in the crypto space? Are we involved in trading? Do we have any connection to cryptomining? What does that mean for our business?’”
After considering these factors, board should examine what the SEC has been saying about cryptocurrency disclosure, which has become an area of focus for the SEC.
“Crypto as an enforcement matter is going to be top of mind for all regulators for the coming months,” said Termine, adding that she expects inquiries to increase in the space.