The U.S. Securities and Exchange Commission (SEC) has set up a new department dedicated to examining violations in accounting practices and financial reporting, which shows that the agency has begun paying more attention to companies’ disclosures at a time when its approach toward crypto is quickly moving from litigation to rulemaking.

For the crypto industry and auditors who analyze their financial reports, this action delivers an unambiguous signal: even though the SEC is expanding its digital asset policy framework through the Crypto Task Force and regulations, it is actively improving its power of evaluating public firms’ disclosures to investors.

A team of accountants and lawyers, led by a Gibson Dunn alum

The new Financial…