Crypto companies confront yet another challenge on top of the ones they already face. This time, the industry has been stuck in a lengthy back-and-forth with U.S. regulators since last year's boom, writes Bloomberg.
Related: Could Terra's Stablecoin Struggles Affect The Circle SPAC Deal And Valuation?
What happened: According to people familiar with the matter, bids to merge with blank-check companies (SPACs) are being scrutinized by SEC accountants because the asset class poses new bookkeeping concerns.
While the SEC has increased scrutiny of all agreements involving special purpose acquisition firms, the delays are especially concerning for virtual-coin companies that are already reeling from a severe market collapse, writes Bloomberg.
Related: SEC Chair Gensler Says Crypto Exchanges' Operating Outside Of The Law': What You Need To Know
"This is just another brick in the obstacle wall that has been steadily constructed by the SEC to impede crypto developments," stated Gary DeWaal, chair of Katten Muchin Rosenman's financial markets and regulation practice, told Bloomberg.
According to data and analytics source SPACInsider, the regulator now takes twice as long to review paperwork from crypto companies as it does from other industries in some cases.
